Why is GMM Pfaudler falling/rising?
As of 16-Jul, GMM Pfaudler Ltd's stock price is Rs 1,311.90, down 1.88%, and has underperformed its sector. Despite a recent short-term gain of 1.70%, its long-term performance is negative, with significant profit declines and a drop in investor participation.
As of 16-Jul, GMM Pfaudler Ltd's stock price is currently at Rs 1,311.90, reflecting a decrease of Rs 25.1 or 1.88%. Today's price summary indicates that the stock has underperformed its sector by 2.24% and has experienced a trend reversal, falling after two consecutive days of gains. The stock touched an intraday low of Rs 1,310, which represents a decline of 2.02%. Despite this drop, GMM Pfaudler is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has shown a positive return of 1.70%, but it has underperformed over the longer term, with a 1-year return of -9.71% and a 3-year return of -8.50%. The company's high management efficiency, indicated by a return on capital employed (ROCE) of 17.76%, and strong debt servicing ability with a low Debt to EBITDA ratio of 1.44 times, suggest a solid financial foundation. However, the stock's profits have fallen by 41.5% over the past year, contributing to its negative performance.In the broader market context, the Sensex has shown a slight decline of 1.08% over the past week, while GMM Pfaudler's stock has increased by 1.70%, indicating that it has outperformed the benchmark in the short term. However, the stock's long-term performance remains concerning, with a significant underperformance compared to the Sensex over 1 year and 3 years, where the Sensex has gained 2.38% and 53.71%, respectively. The falling investor participation, as evidenced by a 15.19% drop in delivery volume against the 5-day average, may also be contributing to the stock's recent decline. Despite high institutional holdings at 36.18%, which typically indicate confidence in the stock, the overall market sentiment and recent profit declines may be weighing on GMM Pfaudler's stock price.
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