Why is Bhatia Communic. falling/rising?
As of 18-Sep, Bhatia Communications & Retail (India) Ltd's stock price is declining at 27.15, down 0.91%, and has underperformed the market with a -14.25% return over the past year. Despite healthy long-term growth indicators, concerns about high debt and low profitability are impacting investor confidence.
As of 18-Sep, Bhatia Communications & Retail (India) Ltd is experiencing a decline in its stock price, currently at 27.15, which represents a decrease of 0.25 or 0.91%. The stock has been losing value for the last two days, with a total drop of 1.06% during this period. It is currently trading above its 50-day, 100-day, and 200-day moving averages, but below its 5-day and 20-day moving averages. Additionally, the stock has underperformed the market over the past year, with a return of -14.25%, compared to the Sensex's slight gain of 0.08%. The delivery volume has also decreased significantly, falling by 41.3% against the 5-day average, indicating a drop in investor participation.In the broader market context, while the Sensex has shown a positive return of 1.80% over the past week, Bhatia Communications has seen a decline of 1.24% in the same timeframe. The company has healthy long-term growth indicators, such as a 31.25% annual growth rate in net sales and a 43.78% increase in operating profit, alongside an attractive valuation with a Price to Book Value of 4.3. However, the high Debt to EBITDA ratio of -1.00 times raises concerns about its ability to service debt, and the average Return on Capital Employed of 5.51% suggests low profitability. These factors contribute to the stock's recent downward movement, despite its long-term growth potential.
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