Why is Future Lifestyle falling/rising?
As of 18-Sep, Future Lifestyle Fashions Ltd is currently priced at 1.83, reflecting a recent rise but showing weak long-term fundamentals and significant profitability challenges. Despite short-term gains and increased investor interest, the stock has underperformed over the past three years and faces high risks.
As of 18-Sep, Future Lifestyle Fashions Ltd is experiencing a price increase, currently at 1.83, which reflects a rise of 0.07 or 3.98%. The stock has shown strong performance recently, gaining 11.59% over the last four days and outperforming its sector by 3%. In the past week, the stock has increased by 8.93%, while over the past month, it has risen by 16.56%. 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 also faced significant challenges, including a net profit decline of -186.48% and a staggering 832.32% increase in raw material costs year-over-year.Broader market context shows that while Future Lifestyle Fashions Ltd has outperformed the Sensex in the short term, it has consistently underperformed against the benchmark over the last three years, with a one-year return of -19.74% compared to the Sensex's slight increase of 0.08%. Despite the recent gains, the stock's long-term performance remains concerning, as it has generated negative returns and faced significant profitability challenges. The rising investor participation, indicated by a 34.39% increase in delivery volume, suggests some renewed interest, but the overall risk associated with the stock remains high due to its historical underperformance and lack of recent financial disclosures.
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