Why is Future Lifestyle falling/rising?
As of 02-Sep, Future Lifestyle Fashions Ltd is priced at 1.58, showing a short-term gain of 5.33% over the past week, but has weak long-term fundamentals and a concerning ability to service debt. Despite recent outperformance against the sector, the stock has declined 22.17% year-to-date, indicating a risky outlook.
As of 02-Sep, Future Lifestyle Fashions Ltd is currently priced at 1.58, reflecting an increase of 0.01 or 0.64%. The stock has shown a positive performance today, outperforming its sector by 1.78% and has been gaining for the last two days, with a total return of 5.33% over the past week. However, the company has not declared results in the last six months, indicating weak long-term fundamental strength. Additionally, the company's ability to service its debt is concerning, with a poor EBIT to Interest ratio of 0.77 and a low Return on Equity of 4.29%. The stock has consistently underperformed against the benchmark over the last three years, with a significant decline in profits and negative results reported in September 2022.In the broader market context, the stock's short-term return of +5.33% over the past week contrasts sharply with the Sensex, which has declined by 0.78% during the same period. Despite this short-term outperformance, the stock's year-to-date performance remains troubling, with a decline of 22.17% compared to the Sensex's gain of 2.58%. The erratic trading pattern, with the stock not trading on three days out of the last twenty, along with a significant increase in delivery volume, suggests rising investor participation, but the overall outlook remains risky due to the lack of recent financial results and ongoing underperformance against benchmarks.
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