The stock's fall to this level represents a continuation of its subdued performance over the past year. Currently, B N Rathi Securities is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market trend, where the Sensex, despite a volatile session, remains above its 50-day moving average and is trading just 0.77% below its 52-week high of 85,290.06 points.
On the day of the new low, B N Rathi Securities underperformed its sector by 2.31%, with a day change of -2.03%. The Sensex itself opened 91.42 points higher but later declined by 403.24 points, closing at 84,639.13, down 0.37%. This divergence highlights the stock's relative weakness compared to the broader market and its NBFC peers.
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Examining the stock’s 1-year performance reveals a decline of 61.78%, a stark contrast to the Sensex’s 9.44% gain over the same period. The stock’s 52-week high was Rs.72.75, underscoring the extent of the recent price erosion. This underperformance is further reflected in the company’s financial results over recent quarters.
B N Rathi Securities has reported negative results for four consecutive quarters. The Profit After Tax (PAT) for the latest six months stands at Rs.3.79 crore, showing a contraction of 49.87%. Similarly, the Profit Before Tax excluding Other Income (PBT less OI) for the quarter is Rs.1.10 crore, reflecting a decline of 53.59%. The company’s operating cash flow for the year is recorded at a negative Rs.22.63 crore, indicating cash outflows from core business activities.
Despite these figures, the company maintains a strong long-term fundamental strength, with an average Return on Equity (ROE) of 15.14%. The latest ROE is 7.7, accompanied by a Price to Book Value ratio of 1, suggesting an attractive valuation metric relative to its book value. However, the stock is trading at a premium compared to its peers’ average historical valuations, which may reflect market perceptions of its underlying business quality or growth prospects.
Over the past year, while the stock price has declined by 61.78%, the company’s profits have fallen by 55.3%, indicating a correlation between earnings performance and market valuation. The majority of the company’s shares are held by non-institutional investors, which may influence trading dynamics and liquidity.
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In summary, B N Rathi Securities’ stock has experienced a notable decline to its 52-week low of Rs.16.35, reflecting a combination of subdued financial results and market pressures. The stock’s performance contrasts with the broader market indices, which have maintained relative strength. Investors analysing this stock should consider the detailed financial metrics and market context to understand the factors influencing its current valuation and price movements.
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