Why is Dalmia Bharat falling/rising?
As of 28-Aug, Dalmia Bharat Sugar & Industries Ltd is priced at 376.20, having recently reversed a two-day decline despite a significant intraday loss. While the company shows strong debt servicing ability and recent profit growth, its long-term growth outlook is concerning due to declining operating profits and underperformance against benchmarks.
As of 28-Aug, Dalmia Bharat Sugar & Industries Ltd is currently priced at 376.20, reflecting an increase of 2.65 (0.71%). The stock has shown a trend reversal by gaining after two consecutive days of decline, despite opening with a significant loss of 5.07% today. It touched an intraday low of Rs 354.6 before recovering. Over the past week, the stock has underperformed with a return of -1.25%, while it has shown a slight positive return of 0.62% over the past month. The company has a low Debt to EBITDA ratio of 1.10 times, indicating a strong ability to service debt, and despite a one-year return of -15.57%, profits have risen by 43.7%, leading to a favorable PEG ratio of 0.3. However, the stock's long-term growth outlook is concerning, with operating profit declining at an annual rate of -3.98% over the last five years, and recent quarterly results showing a significant drop in pre-tax profit.In the broader market context, the stock has outperformed its sector by 0.84% today, but it has consistently underperformed against the benchmark, with a return of -15.57% over the past year compared to the Sensex's -2.08%. The stock's liquidity is adequate, but there has been a notable decline in investor participation, with delivery volume falling by 63.18% against the five-day average. Additionally, domestic mutual funds hold only 0.01% of the company, which may indicate a lack of confidence in the stock's valuation or business prospects. Overall, while there are some positive indicators, the combination of poor long-term growth and recent financial performance challenges contributes to a cautious outlook for Dalmia Bharat Sugar & Industries Ltd.
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