Why is Genus Paper & Bo falling/rising?
As of 15-Jul, Genus Paper & Boards Ltd is priced at 19.63, having recently increased slightly but underperformed its sector and the broader market. The stock has shown a year-to-date decline of 9.79% and faces challenges due to weak fundamentals and low investor confidence.
As of 15-Jul, Genus Paper & Boards Ltd is currently priced at 19.63, reflecting a slight increase of 0.02 (0.1%). The stock has recently gained after two consecutive days of decline, although it underperformed its sector by 1.24%. Over the past week, the stock has decreased by 1.26%, and it has shown a year-to-date decline of 9.79%. Despite this, it has a relatively attractive valuation with a Return on Capital Employed (ROCE) of 4.4, and it is trading at a discount compared to its peers. However, the stock's performance has been hindered by a significant drop in investor participation, with delivery volume falling by 76.04% against the 5-day average, and it has generated a return of -21.10% over the past year, alongside a 15.3% decrease in profits.In the broader market context, the Sensex has increased by 5.67% year-to-date, contrasting sharply with Genus Paper & Boards Ltd's performance. The stock's recent trend indicates a struggle to keep pace with the benchmark, as it has underperformed the BSE500 over the last three years, one year, and three months. The company's weak long-term fundamentals, including a high Debt to EBITDA ratio of 5.45 times and a low ability to service debt, further contribute to its challenges. Additionally, the minimal stake held by domestic mutual funds, at only 0.08%, suggests a lack of confidence in the stock's valuation or business prospects, reinforcing the perception of its below-par performance in both the near and long term.
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