Over the past six consecutive trading sessions, Plaza Wires has recorded a cumulative decline of 12.62%, with the latest session showing a drop of 1.74%. This contrasts sharply with the broader market, where the Sensex registered a marginal gain of 0.09% on the same day. The stock’s performance has consistently lagged behind the sector, underperforming by 1.37% in the most recent session.
Technical indicators further illustrate the stock’s subdued momentum. Plaza Wires is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a persistent bearish trend over both short and long-term horizons.
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Examining the stock’s performance over various time frames highlights the extent of its challenges. Over the last one year, Plaza Wires has recorded a return of -45.95%, while the Sensex has shown a positive return of 9.90%. Year-to-date figures reveal a similar pattern, with the stock down 48.42% against the Sensex’s 9.11% gain. The three-month and one-month returns stand at -29.82% and -20.36% respectively, compared to Sensex returns of 4.16% and 1.06%. Even over the past week, the stock has declined by 12.36%, while the Sensex rose by 0.92%.
Longer-term data indicates that Plaza Wires has not generated returns over the past three, five, and ten years, with the Sensex delivering 38.27%, 94.29%, and 229.59% respectively during these periods. This absence of growth over extended durations underscores the stock’s relative stagnation within its industry and the broader market.
Financial metrics provide further insight into the company’s current standing. Plaza Wires has exhibited a compound annual growth rate (CAGR) of -20.36% in operating profits over the last five years, indicating a contraction in core earnings. The company’s ability to cover interest expenses is limited, with an average EBIT to interest ratio of 1.97, suggesting constrained financial flexibility. Return on equity (ROE) averages at 2.29%, reflecting modest profitability relative to shareholders’ funds.
Despite these figures, Plaza Wires has reported positive results for the last three consecutive quarters. The profit after tax (PAT) for the nine-month period stands at ₹3.43 crores, while quarterly net sales reached a peak of ₹74.71 crores. The return on capital employed (ROCE) is recorded at 4.6%, and the enterprise value to capital employed ratio is 1.4, indicating an attractive valuation metric in isolation.
However, the company’s profits have declined by 22% over the past year, aligning with the downward trend in its stock price. The majority shareholding remains with promoters, maintaining concentrated ownership within the organisation.
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In summary, Plaza Wires’ stock has experienced a significant decline, reaching an all-time low amid a backdrop of subdued financial performance and market underperformance. The stock’s trajectory over multiple time frames and its position relative to key technical indicators highlight the challenges faced by the company within the competitive Cables - Electricals sector.
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