Why is Yuken India falling/rising?

Jul 04 2025 09:07 PM IST
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As of 04-Jul, Yuken India Ltd's stock price is Rs 1,087.60, down 3.54% and underperforming its sector. The company faces challenges with high debt and low profitability, leading to a negative outlook despite past gains.
As of 04-Jul, Yuken India Ltd's stock price is currently at Rs 1,087.60, reflecting a decrease of Rs 39.9 or 3.54%. Today's performance indicates that the stock has underperformed its sector by 4.28%, with an intraday low matching its current price. The stock's trading volume has also shown a significant decline, with delivery volume falling by 42.2% compared to the 5-day average. Over the past week, the stock has decreased by 8.14%, while it has seen a modest increase of 1.29% over the past month. However, the company faces challenges, including a high Debt to EBITDA ratio of 3.41 times and low profitability, as indicated by an average Return on Equity of 5.81%. These factors contribute to a negative outlook for the stock, despite its historical performance over 3 and 5 years showing substantial gains.

In the broader market context, Yuken India's recent decline contrasts with the Sensex, which has only fallen by 0.74% over the same week. While the stock has shown some resilience with a 1.17% increase year-to-date, its one-year return of -7.72% starkly contrasts with the Sensex's positive 4.23% return. This underperformance, coupled with flat results in recent financial reports and a high enterprise value to capital employed ratio, suggests that investor confidence is waning. The stock's current valuation appears expensive relative to its earnings potential, further exacerbating the downward pressure on its price.
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