Why is B C C Fuba India falling/rising?
As of 01-Sep, B C C Fuba India Ltd's stock price is Rs 142.90, down 4.99%, and has underperformed its sector today. Despite strong long-term growth, concerns about valuation and decreasing liquidity are contributing to the recent decline.
As of 01-Sep, B C C Fuba India Ltd is experiencing a decline in its stock price, currently at Rs 142.90, reflecting a decrease of Rs 7.5 or 4.99%. The stock has underperformed its sector by 5.39% today and has been on a consecutive downward trend for the last two days, resulting in a total decline of 6.42% during this period. Despite this recent drop, the stock has shown strong performance over the past month with a return of 44.20% and has consistently outperformed the BSE500 over the last three years, achieving a remarkable 539.37% increase. However, the stock's liquidity appears to be decreasing, as evidenced by a significant drop in delivery volume, which has fallen by 50.57% compared to the five-day average.In the broader market context, while B C C Fuba India has shown impressive long-term growth with a 61.01% return over the past year, the benchmark Sensex has only declined by 2.43% during the same period. This indicates that the stock has been performing well relative to the market overall. Nonetheless, concerns regarding its valuation persist, with a high PEG ratio of 2.3 suggesting that the stock may be overvalued compared to its earnings growth. Additionally, the company's return on capital employed (ROCE) of 14.9% and a high enterprise value to capital employed ratio indicate that investors may be cautious about its current price levels, contributing to the recent decline in stock price.
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