Why is COSCO (India) falling/rising?
As of 17-Sep, COSCO (India) Ltd is priced at 249.40, with a recent positive trend but a significant year-over-year decline of 34.27%. Despite attractive valuation metrics, the company faces profitability challenges and a cautious outlook due to high debt levels and underperformance compared to market benchmarks.
As of 17-Sep, COSCO (India) Ltd is currently priced at 249.40, reflecting an increase of 1.7 or 0.69%. The stock has shown a positive trend recently, gaining 8.32% over the last three days, although it underperformed its sector by 0.53% today. The stock is trading above its 5-day, 20-day, and 50-day moving averages, but below its 100-day and 200-day moving averages. Despite a significant decline of 34.27% over the past year, the stock's valuation appears attractive with a Return on Capital Employed (ROCE) of 4.9 and a lower trading price compared to its peers. However, the company's profitability has been concerning, with a 104.8% drop in profits over the past year and a negative CAGR growth in operating profits over the last five years.In the broader market context, COSCO's short-term return of 7.97% over the past week significantly outpaces the Sensex's return of 1.56% during the same period. This indicates that while the stock is experiencing a short-term rebound, it has still underperformed the benchmark over longer periods, including a 25.55% decline year-to-date compared to the Sensex's 5.83% increase. The company's high Debt to EBITDA ratio of 6.11 times and low average Return on Equity of 4.84% suggest ongoing challenges in servicing debt and generating shareholder value, contributing to a cautious outlook despite recent price movements.
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