Why is Airo Lam falling/rising?
As of 22-Sep, Airo Lam Ltd's stock price is at 108.93, down 1.75%, with significant declines in delivery volume and a 17.80% loss over the past year. The company's weak financial performance, high debt levels, and declining investor interest are contributing to its ongoing underperformance in the market.
As of 22-Sep, Airo Lam Ltd's stock price is currently at 108.93, reflecting a decrease of 1.94, or 1.75%. The stock has underperformed its sector by 0.89% today, and its delivery volume has significantly dropped by 60.64% compared to the 5-day average, indicating falling investor participation. Over the past week, the stock has declined by 3.07%, and it has generated a return of -17.80% over the last year, while its profits have plummeted by 71.5%. Despite having an attractive valuation with a return on capital employed (ROCE) of 4.8 and trading at a discount to its peers, the company’s weak long-term fundamental strength, characterized by a -27.46% CAGR growth in operating profits over the last five years and a high debt to EBITDA ratio of 3.44 times, is contributing to the stock's recent decline.In the broader market context, Airo Lam Ltd has consistently underperformed against the benchmark, with a -17.80% return over the past year compared to the Sensex's -2.28%. This underperformance has been evident over the last three years, where the stock has lagged behind the BSE500 in each annual period. The company's low ability to service debt and declining profitability, as indicated by a return on equity of 8.88%, further exacerbate its challenges in the current market environment. Overall, the combination of weak financial performance and declining investor interest is driving the stock's downward movement.
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