Why is Cords Cable falling/rising?
As of 22-Jul, Cords Cable Industries Ltd is currently priced at 207.20, reflecting a recent positive trend with a 6.75% gain over three days. However, it has underperformed over the past year with a return of -13.67%, raising concerns about long-term growth and debt servicing.
As of 22-Jul, Cords Cable Industries Ltd is experiencing a price increase, currently at 207.20, reflecting a rise of 3.2 or 1.57%. The stock has shown a positive trend recently, gaining 6.75% over the last three days and outperforming the benchmark with a weekly return of +5.71% compared to the Sensex's -0.47%. The company has reported positive results for the last six consecutive quarters, with significant growth in profit before tax and net sales, contributing to its attractive valuation. However, the stock has underperformed in the long term, with a one-year return of -13.67%, despite a notable increase in profits, indicating potential concerns about its ability to service debt and low profitability per unit of shareholders' funds.In the broader market context, while Cords Cable has shown strong short-term performance, it has lagged behind the market over the past year, where the BSE500 index has generated a return of 0.99%. The stock's recent gains may be attributed to rising investor participation, as evidenced by a significant increase in delivery volume, which suggests growing interest among investors. Despite these positive indicators, the company's weak long-term growth metrics and challenges in servicing debt could pose risks that may affect future performance.
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