Why is Vikram Aroma falling/rising?

Jul 10 2025 10:59 PM IST
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As of 10-Jul, Vikram Aroma Ltd's stock price is Rs 110.00, having increased by 1.66%. Despite recent short-term gains, the company faces long-term challenges with weak profitability and significant declines in operating profit, indicating a cautious outlook.
As of 10-Jul, Vikram Aroma Ltd's stock price is currently at Rs 110.00, reflecting an increase of Rs 1.8 or 1.66%. The stock has shown a positive trend recently, gaining 8.37% over the last two days and outperforming its sector by 3.02% today. It opened with a significant gain of 4.44% and reached an intraday high of Rs 113.55. However, despite these short-term gains, the company faces significant long-term challenges, including a weak return on equity of 0% and a concerning annual operating profit decline of 53% over the past five years. The stock's risk profile is further exacerbated by negative EBITDA and a poor EBIT to interest ratio of -1.02, indicating difficulties in servicing its debt.

In the broader market context, Vikram Aroma's performance over the past week shows a decline of 5.90%, contrasting with a slight decrease of 0.06% in the Sensex. While the stock has outperformed its sector recently, its longer-term performance remains weak, with no returns over the past year. The company's struggles with profitability and growth may overshadow its recent price movements, suggesting that while there may be short-term optimism, the underlying fundamentals present a more cautious outlook.
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