Why is Beryl Drugs falling/rising?
As of 15-Sep, Beryl Drugs Ltd's stock price is at 24.22, down 0.33%, and has underperformed significantly over the past year with a return of -37.67%. Despite an attractive valuation, weak fundamentals and concerns over debt servicing contribute to cautious investor sentiment.
As of 15-Sep, Beryl Drugs Ltd is experiencing a slight decline in its stock price, currently at 24.22, reflecting a decrease of 0.08 or 0.33%. The stock's performance today is in line with its sector, and it is trading above its 5-day, 20-day, 50-day, and 100-day moving averages, although it remains below the 200-day moving average. Despite a recent increase in delivery volume by 45.3% compared to the 5-day average, the stock has underperformed significantly over the past year, with a return of -37.67%, while the broader market, represented by the Sensex, has only declined by 1.33%. The company's valuation appears attractive with a ROCE of 11 and a lower enterprise value to capital employed ratio, but its profits have also fallen by 37%, contributing to the stock's downward pressure.In the broader market context, Beryl Drugs' short-term performance has been notably weaker than the benchmark, as it has recorded a 1-week decline of 2.54% compared to the Sensex's gain of 1.24%. This underperformance is compounded by weak long-term fundamentals, including a low average return on capital employed of 7.27% and poor growth in net sales and operating profit over the last five years. Additionally, the company's ability to service its debt is concerning, as indicated by a low EBIT to interest ratio of 0.86. These factors, combined with flat results in the most recent quarter, suggest that investor sentiment may be cautious, leading to the stock's current decline.
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