Why is Aakash Explor. falling/rising?
As of 12-Sep, Aakash Exploration Services Ltd is facing a price decline to 10.00, with a significant annual drop of -21.01% and an 81.4% decrease in profits, indicating serious profitability challenges despite a relatively attractive valuation. The stock has underperformed both its sector and the broader market, reflecting ongoing struggles in long-term growth and profitability.
As of 12-Sep, Aakash Exploration Services Ltd is experiencing a price decline, currently at 10.00, reflecting a change of -0.01 (-0.1%). The stock has underperformed its sector by 0.58% today and shows mixed performance in relation to moving averages, being higher than the 100-day and 200-day averages but lower than the 5-day, 20-day, and 50-day averages. Over the past week, the stock has decreased by 2.25%, and its performance over the last month has also been negative at -4.40%. Notably, the stock has generated a return of -21.01% over the past year, while its profits have plummeted by 81.4%, indicating significant challenges in profitability. Despite having a relatively attractive valuation with a ROCE of 10.5 and trading at a discount compared to peers, the weak long-term fundamental strength and a -23.93% CAGR growth in operating profits over the last five years contribute to the stock's downward trend.In the broader market context, Aakash Exploration Services Ltd has underperformed significantly compared to the benchmark, with the Sensex gaining 1.51% over the past week while the stock fell by 2.25%. Over the last year, while the broader market (BSE500) experienced a decline of -3.45%, Aakash's stock performance was markedly worse, with a drop of -21.01%. This stark contrast highlights the company's struggles relative to the overall market, further exacerbated by flat results reported in June and low profitability per unit of shareholder funds, as indicated by an average Return on Equity of 7.85%.
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