Why is Dredging Corpn. falling/rising?
As of 16-Sep, Dredging Corporation of India Ltd's stock price is 647.55, down 0.16%, and has underperformed its sector and the broader market significantly. Weak financial fundamentals and declining profits are major factors contributing to its poor performance.
As of 16-Sep, Dredging Corporation of India Ltd is experiencing a decline in its stock price, currently at 647.55, reflecting a decrease of 1.05 (-0.16%). The stock has underperformed its sector by 3.46% today and has fallen after two consecutive days of gains. In terms of returns, the stock has shown a modest increase of 1.18% over the past week and 3.09% over the past month; however, it has significantly underperformed on a year-to-date basis with a decline of 22.17%. The company has a negative return on capital employed (ROCE) of -0.6 and has seen a drastic fall in profits, with a year-over-year return of -24.53%. Additionally, the company's weak long-term fundamentals, including a negative EBIT to interest ratio and a high debt-equity ratio, contribute to the stock's downward pressure.Broader market context indicates that while the shipping sector has gained by 3.32%, Dredging Corporation's performance has lagged behind, particularly in the last year where it has underperformed the broader market, which saw a decline of only 2.93%. The stock's liquidity appears adequate, with a significant increase in delivery volume, suggesting some investor interest; however, falling participation from institutional investors, who have reduced their stake, raises concerns about the stock's future performance. Overall, the combination of weak financial fundamentals, poor profit generation, and underperformance relative to both its sector and the broader market are key factors contributing to the stock's decline.
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