Why is D & H India falling/rising?
As of 15-Jul, D & H India Ltd's stock price is at 216.20, down 2.79%, with a significant decline in delivery volume and underperformance in the short term despite strong long-term growth prospects. The high Debt to EBITDA ratio suggests challenges in servicing debt, impacting investor confidence.
As of 15-Jul, D & H India Ltd's stock price is currently at 216.20, reflecting a decrease of 6.2 points or 2.79%. Today's performance indicates that the stock opened with a loss of 2.83% and has underperformed its sector by 3.14%. The stock has shown a significant decline in delivery volume, dropping by 62.58% compared to the 5-day average, which suggests a decrease in investor participation. Despite a strong long-term growth outlook, highlighted by a 65.64% annual growth in operating profit and a 19.53% increase in net profit, the stock's recent movement is negatively impacted by its high Debt to EBITDA ratio of 4.23 times, indicating a low ability to service debt and low profitability per unit of shareholders' funds.In the broader market context, D & H India has outperformed the benchmark Sensex over the long term, with a year-to-date return of 29.62% compared to the Sensex's 5.67%. However, in the short term, the stock has underperformed, with a 9.14% decline over the past month while the Sensex has gained 1.79%. This disparity in performance may be contributing to the stock's current downward trend, as investors may be reacting to the recent underperformance and liquidity concerns, despite the company's strong fundamentals and consistent returns over the last three years.
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