Why is Barak Valley falling/rising?
As of 29-Sep, Barak Valley Cements Ltd's stock price is Rs 50.00, down 3.31%, with a total decline of 7.83% over the last two days. Despite a relatively attractive valuation, the stock has underperformed over the past year and shows weak long-term fundamentals.
As of 29-Sep, Barak Valley Cements Ltd is experiencing a decline in its stock price, currently at Rs 50.00, which reflects a decrease of Rs 1.71 or 3.31%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total drop of 7.83% during this period. Today's trading activity indicates that the stock touched an intraday low of Rs 49.75 and has seen a significant decrease in delivery volume, down by 57.26% compared to the 5-day average. Despite having a relatively attractive valuation with a ROCE of 8.8 and trading at a discount to peers, the stock's performance over the past year has been poor, with a return of -15.61% and a substantial profit decline of 53.5%.In the broader market context, Barak Valley Cements Ltd's short-term performance has been better than the benchmark Sensex, which has declined by 2.18% over the past week, while the stock itself has only decreased by 0.99%. However, the stock's long-term fundamentals appear weak, with a low average ROCE of 8.39% and sluggish growth in net sales and operating profit over the past five years. These factors, combined with flat results reported in June and a poor EBIT to interest ratio, contribute to the stock's current downward trend, despite its recent positive returns over the past month and year-to-date.
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