Why is ACME Solar Hold. falling/rising?
As of 14-Jul, ACME Solar Holdings Ltd's stock price is Rs 291.50, down 1.37%, following a trend reversal after five days of gains. Despite a 14.43% weekly increase, concerns about management efficiency and high debt levels may impact investor confidence.
As of 14-Jul, ACME Solar Holdings Ltd is experiencing a decline in its stock price, currently at Rs 291.50, which reflects a decrease of Rs 4.05 or 1.37%. The stock has recently underperformed its sector by 0.91% and has shown a trend reversal after five consecutive days of gains. Despite touching an intraday high of Rs 303.2, it also reached a low of Rs 287.55 during the day. Over the past week, the stock has performed well, gaining 14.43%, and it has a year-to-date increase of 23.73%. However, the company faces challenges such as poor management efficiency indicated by a low Return on Capital Employed (ROCE) of 6.61% and a high Debt to EBITDA ratio of 6.75 times, which raises concerns about its profitability and ability to service debt. Additionally, there has been a slight decrease in institutional investor participation, which may affect market confidence.In the broader market context, while ACME Solar has outperformed the Sensex in the short term with a 14.43% gain over the past week compared to the Sensex's decline of 1.42%, the recent price drop suggests a correction after a strong performance. The stock's current price is also 4.34% away from its 52-week high, indicating that it is still trading relatively close to its peak. The overall market sentiment may be influenced by the company's financial metrics, which, despite showing healthy growth in operating profit and net sales, highlight significant risks that could deter investors.
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