Why is V I P Inds. falling/rising?

Jun 11 2025 08:53 PM IST
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As of 11-Jun, V I P Industries Ltd's stock price has risen to Rs 413.60, up 11.65%, with strong short-term performance but significant long-term challenges, including a negative CAGR of -170.77% in operating profits and a high debt-to-EBITDA ratio of 3.85 times. Despite outperforming the Sensex recently, the stock has a one-year return of -14.65%, indicating volatility and risks.
As of 11-Jun, V I P Industries Ltd is experiencing a significant rise in its stock price, currently at Rs 413.60, reflecting an increase of Rs 43.15 or 11.65%. The stock has shown strong performance recently, outperforming its sector by 10.15% today and achieving a consecutive gain over the last three days with a total return of 20.34%. Additionally, the stock's one-week return stands at +15.79%, while its one-month return is +26.10%. However, it is important to note that the company has faced challenges in the long term, with a negative compound annual growth rate (CAGR) of -170.77% in operating profits over the past five years and a high debt-to-EBITDA ratio of 3.85 times. This weak fundamental strength, coupled with eight consecutive quarters of negative results, indicates underlying issues that could impact future performance.

Broader market context shows that while V I P Industries has outperformed the Sensex in the short term, with a one-week return of +15.79% compared to the Sensex's +1.87%, it has significantly underperformed over the longer term. The stock has generated a return of -14.65% over the past year, while the broader market has seen a gain of 5.60%. This stark contrast highlights the stock's volatility and the risks associated with its current trading status, particularly given its weak profitability metrics and bearish technical indicators.
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