Why is Ganga Forging falling/rising?
As of 25-Jun, Ganga Forging Ltd's stock price is Rs 4.05, up 0.5%, but has declined 4.93% in the past week and 49.75% over the past year, indicating a bearish trend. The stock's fundamentals are weak, with low ROCE and high debt, and it has underperformed compared to the benchmark Sensex and BSE 500 index.
As of 25-Jun, Ganga Forging Ltd's stock price is currently at Rs 4.05, reflecting an increase of Rs 0.02, or 0.5%. Despite this slight uptick, the stock has shown a significant decline over the past week, down 4.93%, and a staggering 49.75% over the past year. The stock is trading lower than all its moving averages, indicating a bearish trend. Additionally, while the stock is close to its 52-week low, it has seen a rise in investor participation, with delivery volume increasing by 5.35% against the 5-day average. The company's return on capital employed (ROCE) is relatively low at 3.8, and it is trading at a discount compared to its peers, but its profits have fallen by 27% over the past year, contributing to the overall negative sentiment.In the broader market context, Ganga Forging's performance has been notably poor compared to the benchmark Sensex, which has gained 1.74% over the past week and 6.77% year-to-date. The stock's long-term fundamentals are weak, with a high debt to EBITDA ratio of 4.56 times and an average operating profit growth rate of only 7.19% over the last five years. This underperformance is compounded by the fact that the stock has consistently lagged behind the BSE 500 index in various time frames, further highlighting its struggles in both the short and long term.
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