Why is Goodricke Group falling/rising?
As of 24-Sep, Goodricke Group Ltd's stock price is 192.00, down 0.21%, and has underperformed its sector and benchmark significantly. Weak fundamentals, declining sales, and low profitability indicate a lack of investor confidence and risky valuations.
As of 24-Sep, Goodricke Group Ltd's stock price is currently at 192.00, reflecting a decrease of 0.4, or 0.21%. The stock has underperformed its sector by 1.33% today and is trading below all its moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 31.89% compared to the 5-day average. Over the past year, the stock has generated a return of -19.72% and has consistently underperformed against the benchmark, with a 3-year return of -10.61% compared to the Sensex's 40.65%. The company's weak long-term fundamentals, highlighted by a -192.04% CAGR growth in operating profits over the last five years and a poor EBIT to interest ratio of -1.35, further contribute to its declining stock price.In the broader market context, Goodricke Group's short-term performance is notably worse than the benchmark, with a 1-week return of -3.52% compared to the Sensex's -1.18%. This consistent underperformance against the benchmark indicates a lack of investor confidence, exacerbated by negative financial results, such as a 24.9% decline in net sales and a 44.0% drop in profit before tax. The company's low return on equity of 2.64% signifies low profitability, which, combined with the negative operating profits and high PEG ratio of 0.7, suggests that the stock is trading at risky valuations. Overall, these factors contribute to the stock's downward trajectory in the market.
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