Why is Allcargo Gati falling/rising?
As of 17-Sep, Allcargo Gati Ltd's stock price is 62.51, with a recent slight increase but a significant year-to-date decline of 30.74%. The company's weak financial fundamentals and underperformance compared to the benchmark Sensex contribute to cautious investor sentiment despite a rise in delivery volume.
As of 17-Sep, Allcargo Gati Ltd's stock price is currently at 62.51, reflecting a slight increase of 0.01 (0.02%). The stock has been gaining for the last two days, with a total return of 1.64% during this period. However, despite this recent uptick, the stock has significantly underperformed over the longer term, with a year-to-date decline of 30.74% and a one-year drop of 40.27%. The company's financial health is concerning, as indicated by weak long-term fundamentals, including a low Return on Capital Employed (ROCE) of 0.27% and poor growth in net sales and operating profit. Additionally, the company's recent quarterly results showed substantial declines in profit before tax and net sales, further contributing to a perception of risk among investors.In the broader market context, the stock's short-term performance of +0.02% over the past week is notably lower than the benchmark Sensex, which has increased by 1.56% during the same period. This underperformance is consistent with the stock's trend over the last three years, where it has consistently lagged behind the benchmark. The rising investor participation, as evidenced by an 82.62% increase in delivery volume, suggests some interest in the stock, but the overall sentiment remains cautious due to its weak fundamentals and the absence of domestic mutual fund investment, indicating a lack of confidence in its future prospects.
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