Why is Barbeque-Nation falling/rising?
As of 14-Aug, Barbeque-Nation Hospitality Ltd's stock price is Rs 253.60, down 2.42%, and close to its 52-week low. The company has a year-to-date decline of 42.66% and a high Debt to EBITDA ratio, indicating weak fundamentals and making it a strong sell.
As of 14-Aug, Barbeque-Nation Hospitality Ltd is experiencing a decline in its stock price, currently at Rs 253.60, which reflects a decrease of Rs 6.3 or 2.42%. The stock has underperformed its sector by 1.99% today and is close to its 52-week low, being only 2.84% away from Rs 246.4. Over the past week, the stock has shown a slight increase of 0.75%, but it has significantly underperformed over longer periods, with a year-to-date decline of 42.66% and a staggering 56.62% drop over the past year. The company has a very low Return on Capital Employed (ROCE) of 3.2 and has seen its profits fall by 181.7% over the past year, contributing to its weak long-term fundamentals. Additionally, the stock's delivery volume has decreased by 18.58% against the 5-day average, indicating falling investor participation.In the broader market context, the Sensex has remained relatively stable, with a slight decline of 0.03% over the past week, while Barbeque-Nation's performance has been notably worse, highlighting its consistent underperformance against the benchmark over the last three years. Despite high institutional holdings at 30.07%, which typically suggest a level of confidence in the company's fundamentals, the stock's high Debt to EBITDA ratio of 4.20 times raises concerns about its ability to service debt. The negative financial results reported, including a significant loss in profit after tax and low cash reserves, further exacerbate the stock's downward trajectory, making it a strong sell in the current market environment.
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