Why is AVG Logistics falling/rising?
As of 19-Sep, AVG Logistics Ltd's stock price is Rs 241.00, up 1.26% today and 5.24% over the past week, but down 45.25% year-over-year. Despite recent outperformance and increased investor participation, long-term growth concerns and poor profitability metrics may affect future sentiment.
As of 19-Sep, AVG Logistics Ltd's stock price is currently at Rs 241.00, reflecting an increase of Rs 3.0 or 1.26%. The stock has shown a positive trend recently, having gained 2.12% over the last two days and outperforming its sector by 1.92% today. Additionally, the stock has performed well over the past week with a return of 5.24%, although it remains significantly down by 45.25% over the past year. The company has a very attractive valuation with a return on capital employed (ROCE) of 11.4 and is trading at a discount compared to its peers. However, it faces challenges, including a weak ability to service its debt, as indicated by a poor EBIT to Interest ratio of 1.97, and a decline in operating profit over the last five years.In the broader market context, AVG Logistics' recent performance has outpaced the Sensex, which has only increased by 0.88% over the past week. Despite this short-term outperformance, the stock's long-term outlook remains concerning, with a significant decline in returns over the past year and poor growth metrics. The stock's liquidity is adequate, and there has been a notable increase in investor participation, with delivery volume rising by 105.19% against the five-day average. However, the overall negative trends in profitability and long-term growth could weigh on investor sentiment moving forward.
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