As of 02-Jul, Ambika Cotton Mills Ltd is experiencing a decline in its stock price, currently at Rs 1,585.25, which reflects a decrease of Rs 28.75 or 1.78%. The stock has underperformed its sector by 2% today and has fallen after two consecutive days of gains, reaching an intraday low of Rs 1,570.5. Despite trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, the stock has shown a negative return of 5.00% over the past year, while profits have only increased by 4.4%. The company has a low Debt to Equity ratio and an attractive valuation with a Price to Book Value of 1, but it trades at a premium compared to its peers. The recent negative financial results, including a 13.2% drop in PBT and the lowest net sales figures, contribute to the stock's downward movement.
In the broader market context, the stock's short-term performance over the past week shows a gain of 1.22%, which is better than the Sensex's increase of 0.79%. However, the stock has consistently underperformed against the benchmark over the last three years, with a year-to-date return of -2.15% compared to the Sensex's 6.75%. This persistent underperformance, coupled with poor long-term growth indicators such as low annual growth rates in net sales and operating profit, suggests that investor sentiment may be negatively impacted, leading to the current decline in stock price.