Why is CreditAcc. Gram. falling/rising?
As of 25-Jun, CreditAccess Grameen Ltd's stock is at 1,205.50, up 3.41%, showing strong short-term performance but facing challenges with recent negative financial results. Despite long-term growth potential, caution is advised due to its expensive valuation and historical underperformance.
As of 25-Jun, CreditAccess Grameen Ltd's stock price is rising, currently at 1,205.50, reflecting an increase of 39.7 or 3.41%. The stock has shown strong performance recently, gaining 8.6% over the last three days and outperforming its sector by 2.8% today. It has also been trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive trend. Despite the recent gains, the company has faced challenges, including negative results for the last three consecutive quarters, with significant declines in profit before tax and profit after tax compared to previous averages. However, the stock benefits from strong long-term fundamentals, with a compound annual growth rate of 20.59% in operating profits and healthy net sales growth of 27.54%, alongside high institutional holdings at 24.06%.In the broader market context, CreditAccess Grameen Ltd has outperformed the benchmark Sensex in the short term, with a 1-week return of 5.67% compared to the Sensex's 1.61%. However, it has underperformed over the past year, with a return of -11.32% against the Sensex's 6.02%. This contrast highlights the stock's volatility and the impact of recent negative financial results on its long-term performance. Despite the current upward movement, the stock's expensive valuation and recent profit declines suggest caution among investors, particularly in light of its historical underperformance relative to the broader market.
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