Why is G S Auto Intl. falling/rising?
As of 19-Sep, G S Auto International Ltd's stock price is declining at 33.81, down 0.56%, and has underperformed its sector and the market significantly, with a year-to-date loss of 26.99%. The company faces challenges with high debt levels and pledged shares, indicating weak long-term fundamentals.
As of 19-Sep, G S Auto International Ltd is experiencing a decline in its stock price, currently at 33.81, which reflects a decrease of 0.19 or 0.56%. The stock has underperformed its sector today by 0.67% and has been on a downward trend for the last two days, accumulating a total loss of 5.03%. It is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Despite a rise in delivery volume by 1.51% against the 5-day average, the stock's year-to-date performance shows a significant decline of 26.99%, and it has underperformed the market with a 1-year return of -24.19%. The company has a high Debt to EBITDA ratio of 5.18 times, indicating a low ability to service its debt, and 100% of promoter shares are pledged, which adds downward pressure in a falling market.In the broader market context, the Sensex has shown a positive return of 0.88% over the past week and 1.20% over the past month, contrasting sharply with G S Auto's 1-week decline of 1.97% and a minimal 1-month gain of 0.06%. This underperformance is compounded by the company's weak long-term fundamentals, including an average Return on Capital Employed (ROCE) of 6.15%, which is below the attractive valuation suggested by its 11.6 ROCE. Although the stock is trading at a discount compared to its peers, the increase in pledged shares and the significant drop in stock price over the past year highlight the challenges it faces in the current market environment.
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