Why is AVG Logistics falling/rising?
As of 11-Sep, AVG Logistics Ltd's stock price is Rs 231.00, up 3.33% recently, but it has declined 51.88% over the past year. Despite attractive valuation metrics, concerns about debt servicing and poor long-term growth persist.
As of 11-Sep, AVG Logistics Ltd's stock price is currently at Rs 231.00, reflecting an increase of Rs 7.45 or 3.33%. The stock has been gaining momentum recently, with a consecutive gain over the last two days, resulting in a total return of 5% during this period. Today's performance shows that the stock has outperformed its sector by 2.71%, and it reached an intraday high of Rs 233. Despite this positive movement, the stock has experienced significant declines over the past year, with a return of -51.88%. The company's valuation appears attractive with a return on capital employed (ROCE) of 11.4, but it is trading at a discount compared to its peers. However, the stock's ability to service its debt is concerning, as indicated by a poor EBIT to Interest ratio of 1.97, and it has faced a decline in profits by -9.9% over the last year.In the broader market context, the stock's short-term performance has not kept pace with the benchmark, as it has recorded a -0.35% return over the past week, while the Sensex has increased by 1.03%. This underperformance is further highlighted by the stock's year-to-date decline of -38.78% compared to a 4.36% rise in the benchmark index. The overall market sentiment appears to be more favorable than that of AVG Logistics, which has struggled with flat results and poor long-term growth, as evidenced by a -9.87% annual decline in operating profit over the last five years.
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