Why is AVG Logistics falling/rising?
As of 29-Aug, AVG Logistics Ltd's stock price is Rs 213.40, down 1.45%, and has declined 9.69% over the last five days. The company faces negative investor sentiment due to falling profits, poor debt servicing, and consistent underperformance compared to market benchmarks.
As of 29-Aug, AVG Logistics Ltd is experiencing a decline in its stock price, currently at Rs 213.40, which reflects a decrease of Rs 3.15 or 1.45%. The stock has been underperforming, having fallen consecutively for the last five days, resulting in a total decline of 9.69% during this period. Additionally, it has underperformed its sector by 0.54% today. The stock has also shown poor returns over various periods, including a 52.44% drop over the past year and a 14.12% decline over the past month. Despite a relatively attractive valuation with a return on capital employed (ROCE) of 11.4, the company's profits have decreased by 9.9%, contributing to negative sentiment among investors.In the broader market context, AVG Logistics' performance has been significantly worse than the benchmark, with a 1-week return of -7.74% compared to the Sensex's -1.84%. This trend of underperformance is consistent over longer periods, as the stock has lagged behind the BSE500 index in the last three years, one year, and three months. The company's weak ability to service its debt, indicated by a poor EBIT to interest ratio of 1.97, along with a decline in operating profit at an annual rate of -9.87% over the last five years, further exacerbates the negative outlook. Overall, the combination of declining profits, poor debt servicing capability, and consistent underperformance relative to the market has led to a lack of investor confidence, resulting in the stock's downward movement.
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