Why is Allied Digital falling/rising?
As of 18-Sep, Allied Digital Services Ltd's stock price is rising at 203.10, up 1.63%, with strong short-term gains but facing long-term challenges such as low ROCE and a significant decline in PAT. Despite outperforming the Sensex recently, the stock's year-to-date decline and lack of mutual fund investment raise concerns about its long-term growth potential.
As of 18-Sep, Allied Digital Services Ltd is experiencing a rise in its stock price, currently at 203.10, reflecting an increase of 3.25 or 1.63%. The stock has shown strong performance recently, gaining 22.94% over the past week and 27.34% over the past month. It has been on a consecutive gain streak for the last five days, with an opening gain of 2.05% today and reaching an intraday high of Rs 208.75. Additionally, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive trend. However, despite these short-term gains, the company faces challenges such as a low return on capital employed (ROCE) of 9.91% and a significant decline in profit after tax (PAT) over the last six months, which has decreased by 72.15%.In the broader market context, Allied Digital's recent performance significantly outpaces the benchmark Sensex, which has only increased by 1.80% over the past week. While the stock has shown a remarkable recovery in the short term, it has underperformed over the longer term, with a year-to-date decline of 13.57% compared to the Sensex's gain of 6.24%. The lack of domestic mutual fund investment, which stands at 0%, may indicate a lack of confidence in the company's long-term prospects, despite its recent price movements. Overall, while the stock is currently rising, its long-term growth potential remains questionable due to poor financial metrics and market sentiment.
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