Why is Chrome Silicon falling/rising?
As of 07-Jul, Chrome Silicon Ltd's stock price is Rs 47.90, up 5.27% recently, but it faces significant financial challenges, including operating losses and a concerning ability to service debt. Despite short-term outperformance against the Sensex, its year-to-date performance is negative, indicating volatility and risks for long-term investors.
As of 07-Jul, Chrome Silicon Ltd's stock price is currently at Rs 47.90, reflecting an increase of 2.4, or 5.27%. The stock has shown a strong performance recently, gaining 22.51% over the past week and outperforming its sector by 5.72% today. Despite opening with a loss of 2%, it reached an intraday high of Rs 47.90. However, the stock has also experienced significant challenges, including operating losses and a weak long-term fundamental strength, with net sales and profit after tax showing drastic declines. The company's ability to service its debt is concerning, as indicated by a poor EBIT to interest ratio, which contributes to its classification as a risky investment.In the broader market context, while Chrome Silicon has outperformed the Sensex by a considerable margin in the short term, with a 22.51% return over the past week compared to the benchmark's slight decline of 0.20%, its year-to-date performance remains negative at -16.17%, contrasting with the Sensex's positive return of 6.79%. This disparity highlights the stock's volatility and the potential risks associated with its weak financial fundamentals, which may deter long-term investors despite its recent price increase.
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