Why is Brooks Lab. falling/rising?
As of 26-Sep, Brooks Laboratories Ltd's stock price is Rs 139.95, down 1.62%, with a total decline of 4.57% over the last two days. Despite a significant increase in net profit, the stock's weak fundamentals and high valuation are deterring investors amid broader market underperformance.
As of 26-Sep, Brooks Laboratories Ltd is experiencing a decline in its stock price, currently at Rs 139.95, reflecting a decrease of Rs 2.3 or 1.62%. The stock has been underperforming recently, having fallen consecutively for the last two days with a total decline of 4.57%. It has also touched an intraday low of Rs 135.35, indicating significant selling pressure. Despite a recent growth in net profit of 97.76% and positive results over the last three quarters, the stock's long-term fundamentals are weak, with an average return on equity of 0% and a poor EBIT to interest ratio. This has contributed to its current valuation being considered very expensive, which may deter investors.In the broader market context, Brooks Laboratories has underperformed the Sensex benchmark in the short term, with a 1-week return of -5.41% compared to the Sensex's -2.66%. The pharmaceuticals and drugs sector has also seen a decline of 2.35%, reflecting a challenging environment for stocks in this industry. Additionally, there has been a notable decrease in investor participation, with delivery volume falling by 31.71% against the 5-day average. This combination of weak sector performance and declining investor interest likely exacerbates the downward pressure on Brooks Laboratories' stock price.
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