Why is Suryoday Small falling/rising?

Sep 10 2025 11:05 PM IST
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As of 10-Sep, Suryoday Small Finance Bank Ltd is priced at 128.00, having gained 1.31% recently, but it faces significant challenges including a -99.37% decline in operating profit and high Gross NPA of 8.46%. Despite short-term outperformance against the Sensex, the stock has a year-to-date decline of -6.23%, indicating volatility and investor concerns about its valuation and business prospects.
As of 10-Sep, Suryoday Small Finance Bank Ltd is currently priced at 128.00, reflecting an increase of 1.65 (1.31%). The stock has been gaining for the last three days, with a total return of 4.58% during this period, outperforming its sector by 0.96%. Additionally, the stock has shown positive short-term performance, with a 3.23% increase over the past week and a 2.65% increase over the past month. However, despite these recent gains, the company has faced significant challenges, including a drastic decline in operating profit of -99.37% and negative results for the last three consecutive quarters. The high Gross NPA of 8.46% and a substantial drop in profits over the past year, alongside a very expensive valuation, indicate underlying weaknesses that may be affecting investor sentiment.

In the broader market context, Suryoday Small Finance Bank's short-term performance has outpaced the Sensex, which has only increased by 1.06% over the past week. However, the stock has underperformed the benchmark over longer periods, with a year-to-date decline of -6.23% compared to the Sensex's gain of 4.21%. This contrast highlights the stock's volatility and the challenges it faces in maintaining investor confidence, particularly given its poor long-term performance and low domestic mutual fund holdings, which suggest a lack of comfort among institutional investors regarding its valuation and business prospects.
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