Why is Yuken India falling/rising?

Sep 12 2025 09:32 PM IST
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As of 12-Sep, Yuken India Ltd's stock price is 995.30, down 0.85%, with a total decline of 2.34% over the last two days. The company's financial health is concerning, marked by a high Debt to EBITDA ratio and a low Return on Equity, alongside a 23% drop in profit after tax, indicating challenges in profitability and debt servicing.
As of 12-Sep, Yuken India Ltd's stock price is currently at 995.30, reflecting a decrease of 8.55 points or 0.85%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total decline of 2.34% during this period. Today's trading activity indicates a weighted average price closer to the day's low of Rs 980.35, with a significant drop in delivery volume by 41.32% against the five-day average. Over the past month, the stock has experienced a decline of 2.92%, contrasting with a 2.08% increase in the benchmark index. The company's financial health is concerning, highlighted by a high Debt to EBITDA ratio of 3.41 times and a low Return on Equity of 5.81%, indicating challenges in servicing debt and profitability. Additionally, the recent quarterly results showed a decline in profit after tax by 23.0% and the lowest net sales recorded at Rs 104.55 crore.

In the broader market context, while the Sensex has shown a modest gain of 1.48% over the past week, Yuken India has managed a slightly better performance of 1.69% during the same timeframe. However, the stock's year-to-date performance is significantly worse, with a decline of 7.41% compared to the benchmark's 4.82% gain. The stock's long-term growth potential is overshadowed by its recent negative results and high valuation metrics, such as a PEG ratio of 18.8, which suggests that the stock may be overvalued relative to its earnings growth. Overall, the combination of poor recent performance, declining investor participation, and unfavorable financial ratios contributes to the stock's downward movement.
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