Why is AVG Logistics falling/rising?
As of 16-Sep, AVG Logistics Ltd's stock price is at 238.55, up 4.03% recently but down 48.14% over the past year. Despite short-term gains and outperforming the Sensex recently, the company's weak debt servicing ability and long-term profit decline suggest a cautious outlook for investors.
As of 16-Sep, AVG Logistics Ltd's stock price is currently at 238.55, reflecting an increase of 9.25, or 4.03%. The stock has shown a positive trend recently, gaining 4.17% over the last two days and outperforming its sector by 2.24% today. It opened with a significant gain of 8.98% and reached an intraday high of Rs 249.9. However, despite this short-term rise, the stock has experienced a substantial decline of 48.14% over the past year, with profits also falling by 9.9%. The company's weak ability to service its debt, indicated by a poor EBIT to Interest ratio of 1.97, and a long-term operating profit decline of 9.87% over the last five years, contribute to a mixed outlook for the stock.In the broader market context, AVG Logistics has outperformed the Sensex in the short term, with a 1-week return of 8.43% compared to the Sensex's 1.58%. However, the stock's year-to-date performance remains concerning, with a decline of 36.77% against the Sensex's gain of 5.43%. This juxtaposition highlights the stock's volatility and the challenges it faces despite recent gains. The logistics sector itself has seen a slight increase of 2.06%, which may have contributed to the stock's recent upward movement, but the overall long-term performance remains below par, indicating that investors should remain cautious.
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