Why is Hindoo. Mills falling/rising?
As of 14-Aug, Hindoostan Mills Ltd is priced at 194.50, with recent short-term gains overshadowed by significant long-term underperformance, including a year-to-date decline of 9.28% and a one-year return of -30.55%. The company faces serious financial challenges, including operating losses and a poor ability to service its debt.
As of 14-Aug, Hindoostan Mills Ltd is currently priced at 194.50, reflecting an increase of 0.6, or 0.31%. The stock has shown positive momentum recently, gaining for the last two days and achieving a total return of 6.81% during this period. However, despite this short-term performance, the stock has underperformed significantly over the longer term, with a year-to-date decline of 9.28% and a one-year return of -30.55%. The company is facing challenges, including operating losses and a weak ability to service its debt, which is reflected in a poor EBIT to Interest ratio of -6.86. Additionally, the company has reported negative ROCE, and its net sales have decreased by 72.72% over the latest six months, indicating serious financial difficulties.In the broader market context, Hindoostan Mills has outperformed the Sensex by 0.28% over the past week, while the benchmark has seen a slight decline of 0.03%. However, the stock's long-term performance remains concerning, as it has consistently underperformed against the benchmark over the last three years, with a stark contrast in returns compared to the Sensex, which has risen by 3.15% year-to-date. The falling investor participation, evidenced by a significant drop in delivery volume, further complicates the stock's outlook. Overall, while there are short-term gains, the underlying financial weaknesses and historical underperformance suggest a challenging environment for Hindoostan Mills Ltd.
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