Why is Alpine Housing falling/rising?
As of 04-Jul, Alpine Housing Development Corporation Ltd's stock is priced at Rs 135.50, down 0.99% after four consecutive days of decline. Despite strong recent sales growth and better year-to-date performance compared to the Sensex, concerns over long-term fundamentals and high valuation may be causing investor caution.
As of 04-Jul, Alpine Housing Development Corporation Ltd's stock is currently priced at Rs 135.50, reflecting a decrease of Rs 1.35 or 0.99%. The stock has been underperforming recently, having fallen for the last four consecutive days, resulting in a total decline of 3.21% over that period. Despite opening with a gain of 2.19% today and reaching an intraday high of Rs 139.85, the stock's performance has been hampered by a significant drop in investor participation, with delivery volume decreasing by 31.79% compared to the five-day average. Although the company reported positive results with a 36.23% growth in net sales over the last six months and the highest operating profit to net sales ratio, the long-term fundamental strength appears weak, with a low return on capital employed (ROCE) of 5.54% and poor growth rates over the past five years.In the broader market context, Alpine Housing's short-term performance has outpaced the benchmark Sensex, which has declined by 0.74% over the past week, while Alpine's stock has only fallen by 0.44%. However, the stock's year-to-date return of 23.18% is significantly higher than the Sensex's 6.77%, indicating strong performance in the longer term. Despite this, the stock's recent price decline, coupled with its expensive valuation relative to peers and a negative sentiment due to weak long-term growth prospects, suggests that investors may be cautious, leading to the current downward movement in price.
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