Why is Yarn Syndicate falling/rising?

Jul 15 2025 09:36 PM IST
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As of 15-Jul, Yarn Syndicate Ltd's stock price is at 20.40, down 4.09%, and has underperformed its sector by 5.27%. Despite recent short-term gains, the stock has a significant year-to-date decline of 30.96% and weak long-term fundamentals, which may be affecting investor sentiment.
As of 15-Jul, Yarn Syndicate Ltd's stock price is currently at 20.40, reflecting a decrease of 0.87, or 4.09%. The stock has recently underperformed its sector by 5.27% and has experienced a trend reversal, falling after two consecutive days of gains. Despite a positive performance over the past week and month, with returns of 3.55% and 14.48% respectively, the stock has significantly underperformed over the year, with a staggering decline of 62.89%. Positive factors include a higher profit after tax and net sales in the latest quarter, alongside a very attractive valuation indicated by a low enterprise value to capital employed ratio. However, the stock's long-term fundamental strength is weak, evidenced by a low return on capital employed and a high debt to EBITDA ratio, which may contribute to investor concerns.

In the broader market context, while the Sensex has generated a return of 1.79% over the past month, Yarn Syndicate's performance has been notably better in the short term, suggesting some investor interest. However, the stock's year-to-date performance shows a decline of 30.96%, contrasting sharply with the Sensex's gain of 5.67%. This underperformance over the longer term, coupled with the company's weak fundamentals, may be influencing investor sentiment negatively, leading to the current decline in stock price.
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