Why is Brooks Lab. falling/rising?
As of 25-Aug, Brooks Laboratories Ltd's stock price is Rs 142.45, down 2.16%, and has underperformed its sector and the broader market. Despite strong recent profit growth, weak long-term fundamentals and high valuation ratios are causing investor concerns and contributing to the stock's decline.
As of 25-Aug, Brooks Laboratories Ltd is experiencing a decline in its stock price, currently at Rs 142.45, which reflects a decrease of Rs 3.15 or 2.16%. The stock has underperformed its sector by 2.57% today and reached an intraday low of Rs 140, marking a drop of 3.85%. Over the past week, the stock has decreased by 4.17%, and its year-to-date performance shows a significant decline of 22.98%. Despite reporting very positive results with a 97.76% growth in net profit and consistent positive results over the last three quarters, the stock's long-term fundamentals appear weak, with an average return on equity of 0% and a poor EBIT to interest ratio of -3.82, contributing to its recent price movement.In the broader market context, the Sensex has shown a slight increase of 0.45% over the past week, contrasting with Brooks Laboratories' negative performance. This indicates that the stock is not only underperforming its sector but also lagging behind the overall market. The company's weak long-term growth, evidenced by a mere 1.04% annual growth in net sales over the last five years, further exacerbates investor concerns. Although the stock is trading at a discount compared to its peers, the high price-to-book value of 4.3 and a PEG ratio of 1.9 suggest that it may be overvalued, leading to a lack of investor confidence and contributing to the stock's decline.
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