Why is Dalmia Bharat falling/rising?
As of 11-Sep, Dalmia Bharat Sugar & Industries Ltd's stock price is declining at 374.00, down 0.93%, and has underperformed its sector. Despite strong debt servicing capabilities and trading at a discount, the stock faces long-term growth concerns and significant recent profit declines.
As of 11-Sep, Dalmia Bharat Sugar & Industries Ltd is experiencing a decline in its stock price, currently at 374.00, which reflects a decrease of 3.5 points or 0.93%. The stock has underperformed its sector by 2.1% today, and while it is trading above its 20-day moving average, it is below the 5-day, 50-day, 100-day, and 200-day moving averages. In terms of performance over various periods, the stock has seen a 1-week decline of 1.97%, a 1-month increase of 4.43%, and a year-to-date rise of 2.92%. However, it has significantly underperformed over the past year with a return of -17.44%. The company's ability to service debt is strong, indicated by a low Debt to EBITDA ratio of 1.10, and it trades at a discount compared to peers, but its long-term growth prospects are poor, with operating profit declining at an annual rate of -3.98% over the last five years.In the broader market context, the stock's recent performance contrasts with the Sensex, which has gained 1.03% over the past week. The stock's underperformance is further highlighted by its low domestic mutual fund ownership, suggesting a lack of confidence among institutional investors. Additionally, the company reported a significant drop in pre-tax profit and net profit in its latest quarterly results, alongside rising raw material costs, which may contribute to the negative sentiment surrounding the stock. Overall, while there are some positive indicators regarding valuation and profit growth, the combination of poor recent performance and long-term growth concerns is likely driving the stock's current decline.
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