Why is Allcargo Termi falling/rising?
As of 18-Jul, Allcargo Terminals Ltd's stock price is declining at 33.54, down 0.74%, after reversing a seven-day gain trend. Despite recent short-term gains, the company faces significant long-term financial challenges, including a 22% profit drop and reduced institutional confidence.
As of 18-Jul, Allcargo Terminals Ltd is experiencing a decline in its stock price, currently at 33.54, reflecting a decrease of 0.25 or 0.74%. The stock has underperformed its sector by 0.51% today and has seen a trend reversal after seven consecutive days of gains. Despite trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, the stock's year-to-date performance shows a significant decline of 11.27%, and it has generated a return of -36.78% over the past year. The company's profitability has also been a concern, with a reported fall in profits by 22% over the last year, and a negative PAT of Rs -1.80 crore, indicating weak financial health.In the broader market context, the stock's short-term performance of +14.63% over the past week contrasts sharply with the Sensex, which has declined by 0.90%. However, the stock's long-term fundamentals are weak, as evidenced by a -11.28% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 3.31 times, which raises concerns about its ability to service debt. Additionally, institutional investors have reduced their stake in the company, indicating a lack of confidence in its future prospects. Overall, while there have been short-term gains, the underlying financial challenges and declining institutional interest contribute to the stock's current downward movement.
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