Why is Ashish Polyplast falling/rising?
As of 27-Jun, Ashish Polyplast Ltd's stock price is Rs 36.21, down 4.46% and has underperformed its sector and the Sensex significantly over the past month and year. Weak fundamentals, high valuation compared to peers, and declining liquidity contribute to its ongoing negative performance.
As of 27-Jun, Ashish Polyplast Ltd is experiencing a decline in its stock price, currently at Rs 36.21, reflecting a decrease of 1.69 (-4.46%). The stock has underperformed its sector by 4.14% today and has been on a consecutive downward trend for the last two days, with a total decline of 4.74%. The stock's performance over the past week shows a slight decrease of 0.63%, while it has significantly underperformed the Sensex over the past month and year, with returns of -4.96% and -48.94%, respectively. The company's weak long-term fundamentals, highlighted by a low return on capital employed (ROCE) of 4.29% and a poor EBIT to Interest ratio of 0.27, contribute to its negative performance. Additionally, the stock is trading at a premium compared to its peers, which further exacerbates its valuation issues.Broader Market Context: In the context of the broader market, the Sensex has shown positive returns of 2.00% over the past week and 3.07% over the past month, contrasting sharply with Ashish Polyplast's negative performance. The stock's liquidity is also a concern, as indicated by a drastic fall in delivery volume, which has decreased by 99.15% against the 5-day average. This lack of investor participation, combined with the company's flat financial results and declining earnings per share, suggests a challenging environment for the stock, leading to its continued decline in value.
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