Why is Credo Brands falling/rising?
As of 20-Aug, Credo Brands Marketing Ltd's stock price is at 122.75, having increased by 1.28% recently, but it has declined 26.98% over the past month. Despite short-term gains and strong fundamentals, the stock's long-term performance remains concerning, with a year-to-date drop of 29.92%.
As of 20-Aug, Credo Brands Marketing Ltd's stock price is currently at 122.75, reflecting an increase of 1.55, or 1.28%. The stock has been on a positive trajectory over the last three days, gaining a total of 7.11%. However, it underperformed its sector today by 0.38%. Despite this recent uptick, the stock has experienced a significant decline over the past month, down 26.98%, and a year-to-date drop of 29.92%. The stock is trading above its 5-day moving averages but remains below its longer-term moving averages. Additionally, there has been a notable decrease in investor participation, with delivery volume falling by 42.22% compared to the 5-day average, indicating a potential concern for liquidity.In the broader market context, the stock's short-term performance of +6.65% over the past week outpaces the Sensex's gain of +1.64%, suggesting a relative strength in the short term. However, the stock's long-term performance is concerning, with a 1-year return of -36.89% compared to the Sensex's modest gain of 1.31%. Despite these challenges, the company exhibits strong fundamentals, including a high return on capital employed (ROCE) of 17.54% and a low debt-to-EBITDA ratio of 1.31, which support its valuation. The stock is currently trading at a discount relative to its peers, and its profits have increased by 16% over the past year, contributing to a favorable PEG ratio of 0.8. These factors suggest that while the stock has faced significant price declines, its underlying financial health remains robust, which may support future recovery.
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