Why is DMR Hydroengg. falling/rising?
As of 17-Sep, DMR Hydroengineering & Infrastructures Ltd is experiencing a price increase to Rs 52.08, up 5.0%, and has shown strong short-term performance, significantly outperforming the benchmark Sensex. However, concerns about the company's long-term fundamentals and high valuation metrics suggest potential risks for future performance.
As of 17-Sep, DMR Hydroengineering & Infrastructures Ltd is experiencing a price increase, with its current price at Rs 52.08, reflecting a rise of 2.48 or 5.0%. The stock has shown strong performance today, outperforming its sector by 4.77%, and has reached an intraday high of Rs 52.08. It is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive trend. Over the past week, the stock has gained 6.07%, and over the last month, it has surged by 142.16%. Despite these positive movements, there are concerns regarding the company's long-term fundamental strength, as it has not declared results in the last six months and has a weak EBIT to Interest ratio of 1.28. In the broader market context, DMR Hydroengineering's short-term performance significantly outpaces the benchmark Sensex, which has only increased by 1.56% over the past week. The company's impressive returns over the last three years, including a 1513.43% increase, further highlight its strong performance relative to the broader market. However, the stock's valuation appears expensive with a Price to Book Value of 4.5, and while it has generated a 106.57% return in the past year, profits have only risen by 11%, leading to a PEG ratio of 0.2. These mixed signals suggest that while the stock is currently rising, underlying fundamental issues may pose risks for future performance.
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