Why is Bannari Amm Spg. falling/rising?
As of 23-Sep, Bannari Amman Spinning Mills Ltd's stock price is Rs. 26.95, down -0.99%, and has reached a 52-week low. Despite a significant profit growth of 147.83%, the stock has underperformed its sector and benchmark, with a -54.80% return over the past year, raising concerns about its long-term fundamentals and investor confidence.
As of 23-Sep, Bannari Amman Spinning Mills Ltd is experiencing a decline in its stock price, currently at Rs. 26.95, which reflects a decrease of -0.27 or -0.99%. The stock has hit a new 52-week low of Rs. 26.67 today and has been on a downward trend, losing -4.67% over the last four days. It has underperformed its sector by -0.37% today and is trading below all key moving averages, indicating persistent weakness. Additionally, the stock has generated a staggering -54.80% return over the past year, despite the company reporting a significant net profit growth of 147.83% and positive results for the last four quarters. However, the stock's long-term fundamentals are weak, with a -2.03% CAGR growth in net sales over the last five years and a high debt to EBITDA ratio of 8.84 times, which raises concerns about its ability to service debt.In the broader market context, the stock has underperformed the benchmark, with a -2.88% return over the past week compared to a -0.34% decline in the Sensex. Over the past year, while the Sensex has only declined by -3.33%, Bannari Amman Spinning Mills has significantly lagged behind, showcasing a consistent trend of underperformance against the benchmark over the last three years. This stark contrast highlights the stock's ongoing struggles, despite its attractive valuation metrics and recent profit growth, leading to a lack of investor confidence and participation, as evidenced by a -57.67% drop in delivery volume against the five-day average.
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