Why is Universal Starch falling/rising?

Jun 24 2025 09:22 PM IST
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As of 24-Jun, Universal Starch Chem Allied Ltd's stock price is Rs 171.00, having increased by 1.48%. Despite recent short-term gains, the stock has significant long-term weaknesses, including a 7.67% decline over the past year and concerns about its ability to service debt.
As of 24-Jun, Universal Starch Chem Allied Ltd's stock price is currently at Rs 171.00, reflecting an increase of Rs 2.5 or 1.48%. The stock has shown a strong performance recently, gaining 9.55% over the last three days and outperforming its sector by 1.08% today. It opened with a significant gain of 11.57% and reached an intraday high of Rs 188. Despite this positive momentum, the stock has experienced a decline of 7.67% over the past year and a 2.29% drop year-to-date, indicating underlying weaknesses. The company reported impressive quarterly growth in profit before tax and profit after tax, but its long-term fundamentals are concerning, with a significant drop in profits over the past year and a weak ability to service debt.

In the broader market context, Universal Starch's short-term return of 5.56% over the past week significantly outperformed the Sensex, which only increased by 0.58% during the same period. However, the stock's long-term performance remains troubling, as it has underperformed the BSE 500 index over the last three years and has a negative return year-to-date. This juxtaposition of strong short-term gains against a backdrop of long-term challenges suggests that while the stock is experiencing a temporary rise, investors may still be cautious due to its overall weak performance and fundamental concerns.
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