Why is Surya Roshni falling/rising?

Aug 19 2025 10:03 PM IST
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As of 19-Aug, Surya Roshni Ltd's stock price has risen to Rs 280.35 after a four-day decline, but it has underperformed over the past year with a -17.54% return. Despite a low Debt to EBITDA ratio and increased institutional interest, long-term growth prospects remain limited.
As of 19-Aug, Surya Roshni Ltd is experiencing a price increase, currently at Rs 280.35, reflecting a rise of Rs 11.0 or 4.08%. Today's performance indicates a trend reversal as the stock has gained after four consecutive days of decline, reaching an intraday high of Rs 285.55. Despite this positive movement, the stock has underperformed in the longer term, with a one-year return of -17.54%, while its profits have decreased by -20.6%. The company has a low Debt to EBITDA ratio of 0.79, suggesting a strong ability to service debt, and it is trading at a discount compared to its peers. Additionally, there has been an increase in institutional investor participation, which may positively influence the stock's perception among retail investors.

In the broader market context, Surya Roshni's recent performance contrasts sharply with the benchmark, as it has fallen by -11.83% over the past week while the Sensex has gained 1.76%. This significant underperformance highlights the challenges the company faces despite today's gains. The stock's liquidity remains adequate, with a delivery volume increase of 44.51% compared to the five-day average, indicating rising investor interest. However, the long-term growth prospects appear limited, as evidenced by a modest annual net sales growth rate of 7.64% over the last five years and a substantial decline in quarterly profits.
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