Why is Universal Auto. falling/rising?

Sep 22 2025 10:55 PM IST
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As of 22-Sep, Universal Autofoundry Ltd's stock price is 68.57, down 0.85%, and has declined 56.30% over the past year. The stock shows weak financial performance and declining investor interest, contributing to its downward trend.
As of 22-Sep, Universal Autofoundry Ltd's stock price is currently at 68.57, reflecting a decrease of 0.59, or 0.85%. The stock has been on a downward trend, having fallen for the last three consecutive days, with a total return of -2.04% over the past month. Additionally, the stock's performance over the last year has been significantly poor, with a decline of -56.30%. The company has a Return on Capital Employed (ROCE) of 4.6, indicating an attractive valuation, but its profits have decreased by 17.9% over the past year. The stock is trading at a discount compared to its peers, yet it has shown weak long-term fundamental strength, with a -2.01% CAGR growth in operating profits over the last five years.

In the broader market context, the stock's short-term performance has underperformed the Sensex, which has gained 0.46% over the past week. The stock's liquidity appears to be declining, with a significant drop in delivery volume by 70.64% against the five-day average. This lack of investor participation, combined with below-par financial results, including a -120.15% fall in profit before tax, suggests that investor confidence is waning. Overall, the combination of weak financial performance, declining investor interest, and underperformance relative to the benchmark contributes to the stock's current downward movement.
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