Why is Centrum Capital falling/rising?
As of 03-Jul, Centrum Capital Ltd's stock price is Rs 35.55, up 4.99% today, with a weekly rise of 12.64%. Despite strong short-term gains, the stock has underperformed over the past year by 10.14%, facing long-term challenges such as negative ROE and a high percentage of pledged shares.
As of 03-Jul, Centrum Capital Ltd's stock price is currently at Rs 35.55, reflecting an increase of Rs 1.69 or 4.99%. The stock has shown strong performance today, outperforming its sector by 5.51% and reaching an intraday high of Rs 35.55. Over the past week, the stock has risen by 12.64%, while its one-month return stands at 7.08%. However, despite this recent uptick, the stock has underperformed over the last year with a decline of 10.14%. Positive factors contributing to the stock's rise include significant growth in net sales, which increased by 64.06% to Rs 1,993.73 crore, and a record high PBDIT of Rs 442.96 crore. Conversely, the stock faces challenges due to weak long-term fundamentals, as indicated by a negative Return on Equity (ROE) of -67.1 and a high price-to-book value of 5.3. Additionally, a concerning 54.89% of promoter shares are pledged, which could exert downward pressure in a falling market.In the broader market context, Centrum Capital's recent performance contrasts sharply with the benchmark, as the Sensex has experienced a slight decline of 0.62% over the past week. While the stock has shown resilience in the short term, its long-term performance remains a concern, especially given its significant underperformance relative to the BSE500, which has generated a return of 2.20% over the past year. The combination of strong short-term gains and persistent long-term weaknesses suggests that while the stock is currently rising, underlying issues may pose risks for future performance.
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