Why is DCM Shriram Inds falling/rising?
As of 08-Jul, DCM Shriram Industries Ltd's stock price is declining at 170.40, down 0.58%, with a year-to-date drop of 7.24%. Despite short-term outperformance against the Sensex, long-term metrics and low mutual fund investment indicate negative sentiment and challenges ahead.
As of 08-Jul, DCM Shriram Industries Ltd is experiencing a decline in its stock price, currently at 170.40, reflecting a decrease of 1.0 or 0.58%. The stock has been losing value for the last two days, with a total drop of 1.76% during this period. Although the stock has outperformed the benchmark Sensex over the past week with a return of 2.25% compared to the Sensex's 0.02%, it has significantly underperformed in the longer term, showing a year-to-date decline of 7.24% against the Sensex's gain of 7.13%. The stock's delivery volume has also decreased by 61.23% compared to the five-day average, indicating falling investor participation. Furthermore, despite an attractive valuation with a return on capital employed (ROCE) of 11.9, the company faces challenges with a high Debt to EBITDA ratio of 2.72, which raises concerns about its ability to service debt.In the broader market context, while the stock has shown some resilience in the short term, it has notably underperformed the market over the past year, with a return of -24.48% compared to the BSE500's gain of 1.98%. This underperformance, coupled with poor long-term growth metrics—such as a mere 2.76% annual growth in net sales over the last five years—has likely contributed to the negative sentiment surrounding the stock. Additionally, the lack of investment from domestic mutual funds, which hold 0% of the company, may reflect a broader lack of confidence in its future prospects, further pressuring the stock price.
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