Why is Alembic Pharma falling/rising?
As of 19-Jun, Alembic Pharmaceuticals Ltd. is facing a stock price decline to Rs 930.80, down 2.64%, with a total drop of 6.7% over the last four days. Despite a low Debt to EBITDA ratio indicating strong debt servicing ability, the company's profits have decreased by 7% over the past year, contributing to negative investor sentiment and underperformance compared to the broader market.
As of 19-Jun, Alembic Pharmaceuticals Ltd. is experiencing a decline in its stock price, currently at Rs 930.80, which reflects a decrease of Rs 25.2 or 2.64%. The stock has been underperforming, having fallen consecutively for the last four days, resulting in a total decline of 6.7% during this period. Additionally, the stock's performance over the past week and month shows a decrease of 5.82% and 9.48%, respectively, while year-to-date, it has dropped by 12.12%. The company has a low Debt to EBITDA ratio of 0.67, indicating a strong ability to service debt, but its profits have fallen by 7% over the past year, contributing to a negative sentiment among investors. Furthermore, the stock is trading at a discount compared to its peers, yet the poor long-term growth, with an annual operating profit decline of 7.30% over the last five years, raises concerns.In the broader market context, Alembic Pharmaceuticals has underperformed the Sensex, which has only declined by 0.40% over the past week. The stock's liquidity remains adequate, but there has been a significant drop in delivery volume, falling by 41.73% against the five-day average, indicating reduced investor participation. High institutional holdings at 20.37% suggest that more informed investors are involved, yet the negative results reported in March, including a significant drop in operating profit and the highest debt-equity ratio, may be influencing the stock's downward trend. Overall, the combination of poor recent performance, declining investor interest, and concerning financial metrics is contributing to the stock's current decline.
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