Why is Tarapur Trans falling/rising?

Jul 14 2025 09:37 PM IST
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As of 14-Jul, Tarapur Transformers Ltd is priced at 28.12, having declined 1.13% recently. Despite a strong annual return of 126.41%, the stock faces challenges such as a negative book value, high debt levels, and significant promoter share pledging, leading to recent underperformance.
As of 14-Jul, Tarapur Transformers Ltd is currently priced at 28.12, reflecting a decline of 0.32, or 1.13%. The stock has been underperforming recently, having fallen consecutively for the last two days, resulting in a total drop of 3.1%. Despite a strong performance over the past year with a return of 126.41%, the company faces significant challenges, including a negative book value and a high Debt to EBITDA ratio, which indicates a low ability to service debt. Additionally, 94.7% of promoter shares are pledged, which can exert downward pressure on the stock price in a declining market.

In the broader market context, the stock has outperformed the benchmark in the short term, with a 1-week return of 2.74% compared to the Sensex's decline of 1.42%. However, the stock's year-to-date performance is concerning, showing a decline of 39.37% against the Sensex's gain of 5.27%. The recent underperformance, combined with the company's weak long-term fundamentals and the risks associated with high promoter pledging, contributes to the stock's current downward movement.
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