Why is Vikram Aroma falling/rising?

Jul 02 2025 11:06 PM IST
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As of 02-Jul, Vikram Aroma Ltd's stock price is Rs 113.90, having increased by 3.55% recently. Despite strong short-term gains, the company faces significant long-term financial challenges, including a 0% ROE and a 53% decline in annual operating profit over five years.
As of 02-Jul, Vikram Aroma Ltd's stock price is currently at Rs 113.90, reflecting an increase of Rs 3.9 or 3.55%. The stock has been on a positive trajectory, gaining for the last six days and achieving a total return of 18.83% during this period. It opened today with a gain of 5% and reached an intraday high of Rs 115.5. However, despite this short-term performance, the company faces significant long-term challenges, including a weak Return on Equity (ROE) of 0% and a concerning annual operating profit decline of 53% over the past five years. Additionally, the stock's negative EBITDA and a poor EBIT to Interest ratio indicate financial instability, which could undermine investor confidence in the long run.

In the broader market context, Vikram Aroma's recent performance has significantly outpaced the benchmark Sensex, which only rose by 0.79% over the past week. This stark contrast highlights the stock's strong short-term momentum, particularly as it has outperformed its sector by 4.44% today. However, the stock's one-month performance shows a decline of 5.28%, contrasting with the Sensex's 2.50% increase, suggesting that while the stock is currently experiencing a rally, its longer-term outlook remains precarious due to the underlying financial issues.
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