Why is UFO Moviez falling/rising?

Jul 11 2025 09:05 PM IST
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As of 11-Jul, UFO Moviez India Ltd's stock price is Rs 76.50, down 2.8%, reflecting a trend reversal after four days of gains and significant underperformance with a year-to-date return of -24.89%. Weak fundamentals, including declining profits and a high percentage of pledged shares, contribute to its poor market performance compared to the broader market.
As of 11-Jul, UFO Moviez India Ltd is experiencing a decline in its stock price, currently at Rs 76.50, which reflects a decrease of Rs 2.2 or 2.8%. Today's performance indicates that the stock has underperformed its sector by 1.86%, following a trend reversal after four consecutive days of gains. The stock reached an intraday low of Rs 75.65, and the weighted average price suggests that more volume was traded closer to this low. Over the past week, the stock has shown a return of +6.78%, but it has significantly underperformed over the longer term, with a year-to-date return of -24.89% and a one-year return of -42.76%. The company's weak fundamentals are highlighted by a -16.56% CAGR growth in operating profits over the last five years, a poor EBIT to interest ratio of -3.79, and a low return on equity of 1.82%. Additionally, the stock is trading at a discount compared to its peers, but the significant drop in profits by -46.3% over the past year raises concerns.

In the broader market context, while the Sensex has generated a return of +5.58% year-to-date, UFO Moviez has notably lagged behind, indicating a stark contrast in performance. The stock's liquidity appears sufficient for trading, but the high percentage of pledged promoter shares (26.15%) could exert additional downward pressure in a falling market. The overall market sentiment has been unfavorable for UFO Moviez, as evidenced by its substantial underperformance relative to the BSE500, which has yielded a return of 0.52% over the past year. This combination of weak financial metrics and poor market performance contributes to the stock's current decline.
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