Why is Bayer CropSci. falling/rising?
As of 11-Nov, Bayer CropScience Ltd's stock price is Rs 4,506.85, down 2.83%, with a year-to-date return of -18.85%. The stock is underperforming its sector and the broader market, reflecting poor financial performance and negative growth indicators.
As of 11-Nov, Bayer CropScience Ltd is experiencing a decline in its stock price, currently at Rs 4,506.85, which reflects a decrease of 131.1 points or 2.83%. The stock has underperformed its sector by 2.4% today, touching an intraday low of Rs 4,490, which is a drop of 3.19%. Over the past week, the stock has seen a return of -6.81%, and its performance over the last month is also negative at -9.92%. Despite a rise in investor participation, with delivery volume increasing by 90.59% against the 5-day average, the stock is trading below all key moving averages, indicating a bearish trend. Additionally, the company has shown poor long-term growth, with operating profit declining at an annual rate of -3.22% over the last five years, and recent financial results have been flat, contributing to the negative sentiment surrounding the stock.In the broader market context, Bayer CropScience's performance contrasts sharply with the Sensex, which has gained 0.49% over the past week. The stock's year-to-date return of -18.85% significantly underperforms the Sensex's gain of 7.34%. The company's low return on equity (ROE) of 1.9 and a high price-to-earnings growth (PEG) ratio of 6.8 suggest that the stock is overvalued compared to its peers. This, combined with a decline in net sales and a low return on capital employed (ROCE), has led to a lack of investor confidence, further exacerbating the stock's downward trajectory. Overall, the combination of poor financial performance, negative growth indicators, and underperformance relative to the market has contributed to the stock's decline.
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