Why is AVG Logistics falling/rising?
As of 12-Aug, AVG Logistics Ltd is currently priced at Rs 244.90, reflecting a recent increase but a significant year-over-year decline of -49.19%. While it has outperformed its sector in the short term, its long-term performance remains concerning, with poor debt servicing capabilities and a declining operating profit growth rate.
As of 12-Aug, AVG Logistics Ltd is experiencing a price increase, currently at Rs 244.90, reflecting a rise of 9.65 (4.1%). Today's price summary indicates that the stock has outperformed its sector by 4.08% and has gained after two consecutive days of decline, opening with a significant gain of 8.4%. The stock reached an intraday high of Rs 255, although it is trading higher than its 5-day moving averages but lower than the 20-day, 50-day, 100-day, and 200-day moving averages. Despite this positive movement, the stock has shown a poor performance over the past year, generating a return of -49.19%, while profits have only increased by 2.9%. The company's weak ability to service its debt, indicated by a poor EBIT to Interest ratio of 1.89, and a declining operating profit growth rate of -8.13% over the last five years, contribute to a mixed outlook.Broader Market Context: In comparison to the benchmark, AVG Logistics has shown a short-term return of +1.49% over the past week, while the Sensex has declined by -0.59%. This indicates that the stock is performing better than the broader market in the short term. However, the stock's long-term performance remains concerning, with a significant decline of -35.09% year-to-date and -49.19% over the past year, which is substantially worse than the Sensex's gain of +2.68% during the same period. This juxtaposition highlights the challenges AVG Logistics faces despite its recent price increase.
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