Why is Delta Manufact. falling/rising?
As of 17-Sep, Delta Manufacturing Ltd's stock price is at 89.42, with a recent increase of 0.75%. Despite short-term gains, the company faces significant challenges, including operating losses and a negative long-term growth outlook, raising concerns about its financial stability.
As of 17-Sep, Delta Manufacturing Ltd's stock price is currently at 89.42, reflecting an increase of 0.67 or 0.75%. The stock has shown a positive trend recently, gaining 3.52% over the last two days and outperforming its sector by 0.79% today. However, despite this short-term performance, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, as indicated by a negative annual growth rate in net sales of -7.34% over the past five years. Additionally, the company has a high debt-to-EBITDA ratio of -1.00 times and a debt-equity ratio of 1.93 times, which raises concerns about its ability to service debt and sustain growth.In the broader market context, Delta Manufacturing's short-term return of +0.81% over the past week is notably lower than the benchmark Sensex, which has increased by 1.56% during the same period. While the stock has outperformed the sector recently, its year-to-date performance remains concerning, with a decline of -17.85% compared to the Sensex's gain of +5.83%. This underperformance, combined with the company's flat results and negative EBITDA, suggests that while there may be some short-term gains, the long-term outlook for Delta Manufacturing remains precarious.
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