Why is Cool Caps falling/rising?
As of 19-Sep, Cool Caps Industries Ltd is seeing a price increase to Rs. 103.20, up 7.84%, and has outperformed its sector. However, concerns about its high Debt to EBITDA ratio and lack of recent results indicate potential risks to its long-term performance.
As of 19-Sep, Cool Caps Industries Ltd is experiencing a price increase, currently at Rs. 103.20, reflecting a rise of Rs. 7.5 or 7.84%. The stock has recently hit a new 52-week high of Rs. 106.9 and has outperformed its sector by 8.5% today. Over the past week, the stock has gained 8.06%, and it has shown impressive returns of 150.00% over the last year, significantly outperforming the BSE500 index. However, despite this strong performance, the company has not declared results in the last six months, and its high Debt to EBITDA ratio of 22.98 times raises concerns about its long-term fundamental strength.In the broader market context, Cool Caps' short-term performance of +8.06% over the past week contrasts sharply with the Sensex's modest gain of 0.85%. This indicates that while the stock is performing well relative to the market, there are underlying risks due to weak long-term fundamentals and negative operating profits. The company’s ability to service its debt is questionable, and despite generating substantial returns, its profitability per unit of capital remains low. These factors suggest that while the stock is currently rising, there are significant risks that could impact its future performance.
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