Why is Asian Tea & Exp falling/rising?
As of 10-Sep, Asian Tea & Exports Ltd is priced at 11.43, down 0.61%, and has significantly underperformed its sector and the broader market. The stock has a low ROCE and high debt levels, contributing to a year-to-date decline of 35.57% despite a profit increase over the past year.
As of 10-Sep, Asian Tea & Exports Ltd is currently priced at 11.43, reflecting a decline of 0.07 or 0.61%. The stock has underperformed its sector today by 2.27%, and it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a return of -1.80%, and it has generated a significant decline of -35.57% year-to-date. Despite a 14% increase in profits over the past year, the stock's return has been -25.97%, indicating weak performance relative to its peers. The company has a low Return on Capital Employed (ROCE) of 1 and a high Debt to EBITDA ratio of 12.82, which suggests challenges in servicing debt and overall profitability.In the broader market context, the Sensex has increased by 1.06% over the past week, contrasting sharply with Asian Tea & Exports Ltd's negative performance. The stock has consistently underperformed against the benchmark over the last three years, which has likely contributed to investor sentiment turning negative. The company's weak long-term fundamental strength, highlighted by a -28.44% CAGR growth in operating profits over the last five years, further exacerbates its struggles in the market. Overall, the combination of underperformance, high debt levels, and low profitability metrics has led to a decline in the stock price.
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