Why is Crompton Gr. Con falling/rising?
As of 29-Aug, Crompton Greaves Consumer Electricals Ltd is seeing a price increase to Rs 330.00, up 1.87%, but has a significant year-over-year decline of -29.03%. Despite strong management efficiency and recent short-term gains, long-term growth prospects appear weak due to declining profits and reduced investor participation.
As of 29-Aug, Crompton Greaves Consumer Electricals Ltd is experiencing a price increase, with the current price at Rs 330.00, reflecting a rise of Rs 6.05 or 1.87%. The stock has outperformed its sector today by 2%, reaching an intraday high of Rs 334.35, which is a 3.21% increase. However, despite this positive movement, the stock has shown a significant decline over the past year, with a return of -29.03%. The company's performance metrics indicate high management efficiency with a return on capital employed (ROCE) of 32.37% and a low debt-to-equity ratio of 0.04. Additionally, the stock is trading at a fair value compared to its peers, but it has also seen a drop in investor participation, with delivery volume falling by 33.25% against the five-day average.In the broader market context, the stock's short-term performance has been favorable, with a 4.18% increase over the past week, while the benchmark Sensex has declined by 1.84%. Despite this short-term outperformance, the stock has struggled in the long term, with a -16.56% return year-to-date and underperformance compared to the BSE500 over various time frames. The company's recent quarterly results have shown a decline in profit before tax and profit after tax, indicating challenges in maintaining growth. While high institutional holdings at 88.13% suggest confidence from larger investors, the overall flat results and poor long-term growth prospects may weigh on the stock's future performance.
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