Why is Guj. Ambuja Exp falling/rising?
As of 03-Jul, Gujarat Ambuja Exports Ltd is priced at 111.05, having recently increased after a decline, but it remains below key moving averages and has underperformed its sector. The stock has shown poor long-term growth and a significant decline in profitability, leading to cautious investor sentiment.
As of 03-Jul, Gujarat Ambuja Exports Ltd is currently priced at 111.05, reflecting an increase of 0.95 (0.86%). The stock has recently gained after five consecutive days of decline, although it continues to trade below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has underperformed the sector by 0.37%, and its delivery volume has significantly decreased by 49.45% compared to the 5-day average. Despite being the largest company in its sector with a market cap of Rs 5,050 cr, the stock has shown poor long-term growth, with net sales declining at an annual rate of -0.50% and operating profit down by -10.52% over the last five years. Additionally, the stock has generated a return of -18.79% over the past year, with profits falling by -27.9%, which may contribute to investor hesitance.In the broader market context, the stock's performance has been notably weaker compared to the benchmark, with a year-to-date return of -10.80% against the Sensex's gain of 6.53%. This consistent underperformance over the last three years, coupled with a low stake from domestic mutual funds at only 0.69%, suggests a lack of confidence in the stock's valuation and future prospects. The overall market sentiment appears to be cautious, particularly given the company's declining profitability and low return on capital employed (ROCE) of 11.07%, which further emphasizes the challenges facing Gujarat Ambuja Exports Ltd in the current market environment.
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