Why is Crompton Gr. Con falling/rising?
As of 25-Aug, Crompton Greaves Consumer Electricals Ltd is currently priced at Rs 323.25, showing a short-term gain but a significant long-term decline of 18.27% year-to-date. Despite strong management efficiency indicators, the stock's performance is hindered by recent poor quarterly results and overall negative growth prospects.
As of 25-Aug, Crompton Greaves Consumer Electricals Ltd is experiencing a price increase, currently at Rs 323.25, reflecting a rise of 6.5 (2.05%). The stock has shown a trend reversal, gaining after three consecutive days of decline, and today it outperformed its sector by 0.93%. Despite this positive movement, the stock has underperformed in the longer term, with a year-to-date decline of 18.27% and a one-year return of -29.54%. The company has a high management efficiency with a return on capital employed (ROCE) of 32.37% and a low debt-to-equity ratio of 0.04, which are positive indicators. However, the stock's performance has been hindered by flat results in the most recent quarter, with a significant drop in profit before tax and profit after tax compared to previous averages.In the broader market context, the stock's recent performance contrasts with the benchmark Sensex, which has gained 0.45% over the past week. While Crompton Greaves has seen a slight uptick today, its longer-term performance remains concerning, particularly with a three-year return of -21.24% compared to the Sensex's 38.90% gain. The stock's liquidity is adequate, with a delivery volume increase of 20.42% against the five-day average, indicating rising investor participation. However, the overall sentiment is tempered by the company's poor long-term growth prospects, as evidenced by a modest annual operating profit growth rate of 7.63% over the last five years and a negative return on investment over the past year.
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