Why is Bhilwara Tech falling/rising?
As of 20-Aug, Bhilwara Technical Textiles Ltd's stock price is at 49.76, showing a recent increase but has reported negative results for the last three quarters, raising concerns about its long-term profitability and debt servicing ability. Despite short-term outperformance against the sector and benchmark, the stock has significantly underperformed over the past month and year.
As of 20-Aug, Bhilwara Technical Textiles Ltd's stock price is currently at 49.76, reflecting an increase of 0.96 or 1.97%. The stock has shown positive momentum recently, with a performance today that outperformed its sector by 2.45%. It has gained consecutively over the last two days, resulting in a total return of 3.54% during this period. However, despite these short-term gains, the company has reported negative results for the last three consecutive quarters, including significant declines in profit before tax and profit after tax. Additionally, the company's weak long-term fundamental strength, characterized by operating losses and a poor EBIT to interest ratio, raises concerns about its profitability and ability to service debt, which may be contributing to the stock's volatility.In the broader market context, the stock has outperformed the benchmark Sensex in the short term, with a weekly return of 4.76% compared to the Sensex's 1.64%. However, over the past month, the stock has underperformed with a decline of 14.62%, while the Sensex has only slightly increased by 0.12%. This indicates that while there may be some positive short-term movements, the overall trend for the stock remains concerning, particularly given its significant underperformance over the past year, where it has fallen by 20.76% compared to the market's decline of only 1.20%.
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