Why is AVG Logistics falling/rising?
As of 15-Sep, AVG Logistics Ltd is priced at 229.30, with a slight increase of 0.3%. The stock has significantly underperformed its sector and the broader market, showing a year-over-year decline of -51.76% and facing challenges such as a weak debt servicing ability and decreasing operating profit.
As of 15-Sep, AVG Logistics Ltd is currently priced at 229.30, reflecting a slight increase of 0.3, or 0.13%. Despite this minor uptick, the stock has underperformed its sector by 2.25% today and has shown a significant decline in performance over the past year, with a return of -51.76%. The stock is trading at a discount compared to its peers, and while it has a very attractive valuation with a return on capital employed (ROCE) of 11.4, the company has faced challenges such as a weak ability to service its debt, indicated by a poor EBIT to Interest ratio of 1.97. Additionally, the operating profit has decreased at an annual rate of -9.87% over the last five years, contributing to its overall negative performance.In the broader market context, the stock's short-term performance has been notably weaker than the benchmark, with a 1-week return of -0.30% compared to the Sensex's gain of +1.24%. This trend of underperformance extends to the 1-month and year-to-date comparisons as well, where AVG Logistics has seen declines of -5.99% and -39.23%, respectively, while the Sensex has recorded positive returns. The logistics sector overall has gained by 2.17%, highlighting the challenges AVG Logistics faces in attracting investor confidence amidst its financial struggles and poor growth prospects.
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