Why is Akums Drugs falling/rising?
As of 23-Sep, Akums Drugs & Pharmaceuticals Ltd is priced at 470.95, down 1.11% and has underperformed with a 45.04% decline over the past year. Despite low debt and attractive valuation, the company faces poor long-term growth and negative investor sentiment due to declining profits and flat results.
As of 23-Sep, Akums Drugs & Pharmaceuticals Ltd is currently priced at 470.95, reflecting a decrease of 5.3, or 1.11%. The stock has been underperforming, having fallen consecutively for the last two days with a total decline of 1.19%. In terms of returns, the stock has decreased by 1.09% over the past week and 2.22% over the past month, while it has experienced a significant drop of 45.04% over the past year. Despite a low debt-to-equity ratio and an attractive valuation indicated by a 2.4 price-to-book value, the company has shown poor long-term growth, with net sales growing at only 6.10% annually over the last five years. Additionally, the recent quarterly results indicate a decline in profit after tax, which has contributed to the stock's negative performance.In the broader market context, the stock's recent performance contrasts sharply with the benchmark Sensex, which has gained 0.98% over the past month and 5.07% year-to-date. This underperformance is further highlighted by the stock's returns being significantly lower than those of the BSE500 over the last three years, one year, and three months. Although there has been a rise in investor participation, as evidenced by a 24.99% increase in delivery volume, the overall sentiment remains negative due to the company's flat results and high interest expenses, leading to a lack of confidence among investors.
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