Why is Avance Tech. falling/rising?

Jul 02 2025 09:31 PM IST
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As of 02-Jul, Avance Technologies Ltd is seeing a price increase to 0.92, up 4.55%, with strong recent performance but significant challenges including low return on equity and high debt. Despite outperforming the Sensex in the short term, long-term growth prospects are hindered by management inefficiency and high valuation.
As of 02-Jul, Avance Technologies Ltd is experiencing a price increase, with the current price at 0.92, reflecting a change of 0.04 or 4.55% upward. The stock has shown strong performance recently, with a 10.84% increase over the past week and a 21.05% increase over the past month. It has outperformed its sector by 3.78% today and has been gaining for the last two days, contributing to a total return of 6.98% in this period. However, despite these positive movements, the company faces significant challenges, including a low return on equity of 0.94%, a high debt to EBITDA ratio of 51.11 times, and a recent decline in net sales and profit after tax, which have fallen by 15.7% and 161.7% respectively compared to previous quarters.

In the broader market context, Avance Technologies Ltd's short-term performance has significantly outpaced the benchmark Sensex, which has only increased by 0.79% over the past week. This indicates that while the stock is rising, it is doing so in a market that is relatively stable. However, the company's long-term growth prospects are tempered by its poor management efficiency and high valuation compared to peers, as indicated by its PEG ratio of 4. These factors suggest that while the stock may be rising in the short term, underlying issues could pose risks for sustained growth.
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