Why is Guj. Raffia Inds falling/rising?
As of 04-Jul, Gujarat Raffia Industries Ltd's stock price is declining at 40.59, down 1.48%, and has underperformed its sector. The company faces significant challenges, including weak long-term growth and low profitability, contributing to its negative market sentiment despite a recent increase in delivery volume.
As of 04-Jul, Gujarat Raffia Industries Ltd is experiencing a decline in its stock price, currently at 40.59, reflecting a decrease of 0.61 or 1.48%. The stock has underperformed its sector by 1.21% today, and while it is trading higher than its 50-day moving average, it remains below the 5-day, 20-day, 100-day, and 200-day moving averages. Over the past week, the stock has shown a slight decline of 0.02%, but it has increased by 6.40% over the past month. However, the company faces significant challenges, including a weak long-term fundamental strength indicated by a -2.60% CAGR growth in net sales over the last five years and a poor EBIT to interest ratio of 0.46. Additionally, the stock's return on equity is low at 4.31%, suggesting low profitability, and it has generated a return of -9.48% over the past year, with profits also declining by 1%.In the broader market context, the stock's performance has been relatively weak compared to the Sensex, which has increased by 3.01% over the past month. The company's majority shareholders are non-institutional, which may affect investor confidence. Despite a rise in delivery volume by 42.02% against the 5-day average, the overall sentiment remains negative due to the company's flat results and below-par performance in both the long-term and near-term periods. The stock is trading at a discount compared to its peers' average historical valuations, but its expensive valuation, coupled with underperformance against the BSE500 over the last three years, indicates ongoing challenges that contribute to its current price decline.
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