Why is Allcargo Gati falling/rising?
As of 11-Aug, Allcargo Gati Ltd's stock price is Rs 61.51, down 2.35%, with a year-to-date decline of 31.84%. Weak fundamentals, disappointing quarterly results, and lack of investor confidence have led to significant underperformance compared to the market.
As of 11-Aug, Allcargo Gati Ltd's stock price is currently at Rs 61.51, reflecting a decline of Rs 1.48 or 2.35%. The stock has underperformed its sector by 2% today, reaching an intraday low of Rs 61.21. Over the past week, the stock has decreased by 7.85%, and it has shown a significant decline of 31.84% year-to-date. The company's weak long-term fundamentals are highlighted by a low average Return on Capital Employed (ROCE) of 0.27%, poor growth in net sales, and a concerning EBIT to Interest ratio. Recent quarterly results have also been disappointing, with a notable drop in profit before tax and net sales, further contributing to the stock's downward trend. Additionally, the lack of domestic mutual fund investment may indicate a lack of confidence in the company's prospects.In the broader market context, the Sensex has only decreased by 0.51% over the past week, indicating that Allcargo Gati's decline is more pronounced than the overall market. The stock's performance has consistently lagged behind the benchmark, with a 35.32% drop in the last year compared to the Sensex's modest gain of 1.13%. This consistent underperformance over the past three years suggests that investor sentiment remains negative, further exacerbated by falling investor participation and liquidity issues. Overall, the combination of weak financial performance, poor investor confidence, and significant underperformance against the benchmark contributes to the stock's current decline.
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