Why is Guj. Craft Inds falling/rising?
As of 12-Sep, Gujarat Craft Industries Ltd is currently priced at Rs 132.65, reflecting a recent increase but a year-to-date decline of 27.61%. Despite outperforming its sector recently, concerns about its financial health and high debt levels may affect long-term stability.
As of 12-Sep, Gujarat Craft Industries Ltd is experiencing a price increase, currently at Rs 132.65, reflecting a rise of 1.65 or 1.26%. The stock has outperformed its sector by 1.97% today and has shown consecutive gains over the last two days, accumulating a total return of 2.27%. However, the stock did touch an intraday low of Rs 126, indicating some volatility. Despite the recent positive movement, the stock has a year-to-date decline of 27.61%, and its profits have decreased by 11.6% over the past year, which may contribute to investor caution. The company has a Return on Capital Employed (ROCE) of 6.5, which is considered attractive, yet it also faces challenges with a high Debt to EBITDA ratio of 3.32 times, indicating potential difficulties in servicing its debt.In the broader market context, Gujarat Craft Industries Ltd has outperformed the Sensex over the past week and month, with returns of 2.79% and 4.12%, respectively, compared to the benchmark's 1.48% and 2.08%. However, the stock's year-to-date performance significantly lags behind the Sensex, which has gained 4.82% in the same period. The falling investor participation, with a dramatic drop in delivery volume, suggests that while the stock may be gaining in the short term, there are underlying concerns regarding its long-term growth potential and financial health that could affect its stability moving forward.
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