Why is Vikram Aroma falling/rising?

Jul 01 2025 11:05 PM IST
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As of 01-Jul, Vikram Aroma Ltd's stock price is Rs 110.00, up 4.96% with a recent total return of 14.76% over five days. However, the company faces long-term challenges, including negative EBITDA and a 0% average ROE, making it a risky investment despite short-term gains.
As of 01-Jul, Vikram Aroma Ltd's stock price is currently at Rs 110.00, reflecting an increase of Rs 5.2, or 4.96%. The stock has shown strong performance recently, with a consecutive gain over the last five days, resulting in a total return of 14.76% during this period. Today, the stock opened with a gain of 4.96% and reached an intraday high of Rs 110. However, it also experienced a low of Rs 102.2, indicating some volatility. Despite this positive short-term movement, the company faces significant challenges, including weak long-term fundamental strength, a negative EBITDA, and a poor average Return on Equity (ROE) of 0%. These factors contribute to a risky investment profile, which may temper investor enthusiasm despite the recent price increase.

In the broader market context, Vikram Aroma's short-term return of 14.76% over the past week significantly outperformed the Sensex, which only increased by 2.00% during the same period. This suggests that the stock's recent gains are not solely driven by overall market trends but may be influenced by specific factors related to the company. However, the stock's performance over the past month shows a decline of 10.35%, contrasting with the Sensex's increase of 2.76%, indicating that while there is short-term momentum, the longer-term outlook remains concerning.
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