Why is Banswara Syntex falling/rising?
As of 02-Jul, Banswara Syntex Ltd is priced at 149.85, showing a short-term positive momentum with a 1.35 increase today. However, its long-term fundamentals are weak, indicated by declining profits and high debt levels, raising concerns about sustainable growth.
As of 02-Jul, Banswara Syntex Ltd is currently priced at 149.85, reflecting an increase of 1.35 or 0.91%. The stock has outperformed its sector today by 0.69%, and it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has shown a return of +2.81%, while its performance over the last month is +1.32%. Despite a year-to-date return of +3.06%, the stock has experienced a decline of -6.64% over the past year, with profits falling by -37.7%. The company's attractive valuation, indicated by a ROCE of 5.3 and a favorable enterprise value to capital employed ratio, suggests potential for growth, although it is trading at a discount compared to its peers. However, the stock's long-term fundamentals are weak, highlighted by a -10.57% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 2.81 times, which raises concerns about its ability to service debt.In the broader market context, Banswara Syntex's short-term performance has outpaced the Sensex, which recorded a return of +0.79% over the same week. This indicates that while the stock is currently showing positive momentum relative to the market, its longer-term performance remains a concern, especially given the significant decline in profits and low domestic mutual fund interest, which suggests a lack of confidence among institutional investors. The overall market environment appears to be supportive of the stock's recent price increase, but the underlying financial challenges may limit its potential for sustained growth.
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