Why is Capacit'e Infra. falling/rising?
As of 22-Aug, Capacite Infraprojects Ltd is priced at 300.00, having gained 1.2 (0.4%) recently, but it has declined 8.56% over the past month and 31.11% year-to-date. Despite strong debt servicing capabilities and short-term gains, the stock's long-term performance is concerning due to high pledged shares and rising costs.
As of 22-Aug, Capacite Infraprojects Ltd is currently priced at 300.00, reflecting an increase of 1.2 (0.4%). The stock has been on a positive trajectory, gaining for the last five days with a total return of 7.97% during this period. It has outperformed its sector by 0.96% today. Despite this recent uptick, the stock has experienced a significant decline over the past month, down 8.56%, and a year-to-date drop of 31.11%. The company's strong ability to service debt, indicated by a low Debt to EBITDA ratio of 0.70 times, and healthy long-term growth with an annual operating profit increase of 36.70% are positive factors. However, the stock is under pressure due to flat results in June, rising raw material costs, and the concerning fact that 100% of promoter shares are pledged, which has increased by 66.43% over the last quarter.In the broader market context, the stock's recent performance contrasts sharply with the benchmark Sensex, which has only increased by 0.88% over the past week. While the stock has shown short-term gains, its long-term performance remains troubling, with a one-year return of -22.83% compared to the market's -1.07%. This underperformance, coupled with the high proportion of pledged shares, suggests that the stock may face additional downward pressure in a falling market. Overall, while there are some positive indicators for Capacite Infraprojects Ltd, the combination of recent gains and significant long-term declines reflects a complex situation for investors.
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