Why is Deco-Mica falling/rising?
As of 16-Sep, Deco-Mica Ltd is priced at 75.10, down 1.18%, and has significantly underperformed its sector and the broader market over the past week and year. Despite an attractive valuation, the company's weak fundamentals and declining investor participation are contributing to its price decline.
As of 16-Sep, Deco-Mica Ltd is currently priced at 75.10, reflecting a decrease of 0.9, or 1.18%. The stock has underperformed its sector today by 1.02%, and it has shown erratic trading patterns, not trading on one day out of the last twenty. The stock's performance over the past week has been notably poor, with a decline of 6.13%, while it has generated a return of -17.29% over the past year, significantly underperforming the broader market. Despite a very attractive valuation indicated by a ROCE of 10.9 and trading at a discount compared to peers, the stock's profits have fallen by 0.9%, contributing to its recent price decline.Broader market context shows that while the Sensex has gained 1.58% over the past week, Deco-Mica's performance has been negative, highlighting a stark contrast in momentum. The company's weak long-term fundamental strength, characterized by a high Debt to EBITDA ratio of 3.40 times and a low average Return on Equity of 8.68%, suggests challenges in profitability and debt servicing. Additionally, the stock's liquidity is adequate for trading, but the significant drop in delivery volume by 61.63% against the 5-day average indicates falling investor participation, further pressuring the stock's price.
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