Why is Crest Ventures falling/rising?

Jul 03 2025 08:55 PM IST
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As of 03-Jul, Crest Ventures Ltd is seeing a price increase to Rs 384.50, marking a reversal after five days of decline, though it remains below key moving averages and has shown negative returns over the past week and month. Despite strong annual operating profit growth, concerns about sustainability and investor confidence persist due to low turnover ratios and a lack of mutual fund investment.
As of 03-Jul, Crest Ventures Ltd is experiencing a price increase, currently at Rs 384.50, reflecting a rise of 7.8 points or 2.07%. Today's performance indicates a trend reversal as the stock has gained after five consecutive days of decline. Despite this uptick, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting underlying weakness. The stock has outperformed its sector by 2.42% today, but it has shown a negative return of -4.60% over the past week and -3.89% over the past month. Additionally, the company's operating profit has grown at an annual rate of 41.22%, but it faces challenges with a recent drop in PAT and low turnover ratios, indicating potential operational inefficiencies.

Broader market context shows that while Crest Ventures has underperformed the Sensex over the past week, month, and year, it has significantly outperformed the benchmark over the last three and five years, with returns of 124.46% and 473.88%, respectively. The stock's recent rise may be attributed to a short-term recovery after a period of decline, but the lack of investor participation, as indicated by a significant drop in delivery volume, raises concerns about the sustainability of this upward movement. Furthermore, the absence of domestic mutual fund investment suggests a lack of confidence in the stock's valuation, which is deemed expensive relative to its peers despite a low PEG ratio of 0.3.
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