Why is Vikram Aroma falling/rising?
As of 03-Jul, Vikram Aroma Ltd's stock price is Rs 116.90, up 2.63% over the day and 21.96% over the past week. Despite recent gains, the company faces significant long-term financial challenges, including weak ROE and declining operating profit, which may affect future growth.
As of 03-Jul, Vikram Aroma Ltd's stock price is currently at Rs 116.90, reflecting an increase of Rs 3.0 or 2.63%. The stock has been on a positive trajectory, gaining for the last seven days and achieving a total return of 21.96% during this period. Today's performance shows that it has outperformed its sector by 2.66%, with an intraday high of Rs 119, although it also experienced a low of Rs 111.1. Despite these gains, the company faces significant challenges, including weak long-term fundamental strength indicated by an average Return on Equity (ROE) of 0% and a concerning EBIT to Interest ratio of -1.02. Additionally, the stock has shown negative EBITDA and a drastic decline in operating profit over the past five years, which could undermine investor confidence.In the broader market context, Vikram Aroma's short-term performance of +19.41% over the past week stands in stark contrast to the Sensex, which has declined by 0.62% during the same period. However, over the past month, Vikram Aroma has slightly underperformed with a return of -0.81%, while the Sensex has increased by 3.10%. The stock's recent rise may be attributed to short-term trading dynamics rather than long-term stability, as evidenced by falling investor participation and a significant drop in delivery volume. This suggests that while the stock is currently rising, underlying financial weaknesses could pose risks for sustained growth.
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