Why is Brooks Lab. falling/rising?
As of 16-Jul, Brooks Laboratories Ltd is seeing a price increase to 157.05, but despite recent short-term gains, it has weak long-term fundamentals, including a negative ROE and declining sales growth. The stock's year-to-date return is -15.09%, indicating a concerning long-term outlook amidst high volatility and reduced delivery volume.
As of 16-Jul, Brooks Laboratories Ltd is experiencing a price increase, currently at 157.05, reflecting a rise of 3.05 or 1.98%. The stock has shown strong performance recently, gaining 12.5% over the last six days and outperforming its sector by 2.25% today. It has also outperformed the benchmark Sensex significantly over the past week and month, with returns of +10.33% and +27.06%, respectively. However, despite this positive short-term performance, the stock has a weak long-term fundamental strength, indicated by a negative Return on Equity (ROE) of -10.2% and a declining annual growth rate in net sales of -2.90% over the last five years. In the broader market context, while Brooks Laboratories has outperformed the Sensex in the short term, it has a year-to-date return of -15.09%, contrasting with the Sensex's +5.75%. This divergence suggests that despite recent gains, the stock's long-term outlook remains concerning due to weak fundamentals, including a poor EBIT to Interest ratio and a high Price to Book Value ratio of 4.7. The stock's high volatility today, with an intraday volatility of 4982.52%, further indicates uncertainty among investors, compounded by a significant drop in delivery volume, which fell by 93.16% against the five-day average.
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