Why is Hind.Urban Infra falling/rising?
As of 04-September, Hindusthan Urban Infrastructure Ltd's stock is priced at 2,371.00, reflecting a 1.62% increase, but faces significant long-term challenges with a -225.15% CAGR in operating profits and a high Debt to EBITDA ratio. Despite recent short-term gains, the company's long-term outlook remains precarious, indicating potential risks for investors.
As of 04-September, Hindusthan Urban Infrastructure Ltd is experiencing a price increase, currently at 2,371.00, reflecting a rise of 37.7 or 1.62%. The stock has outperformed its sector by 0.69% today and is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. However, there has been a notable decline in investor participation, with delivery volume falling by 41.31% compared to the 5-day average. Over the past week, the stock has gained 3.31%, while it has seen a significant increase of 14.87% over the past month, contrasting with a year-to-date decline of 6.76%. Despite these short-term gains, the company faces serious challenges, including a weak long-term fundamental strength characterized by a -225.15% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 15.67 times, leading to negative returns on equity.In the broader market context, the stock's recent performance has been notably better than the benchmark, as it has outperformed the Sensex, which has only increased by 0.80% over the past week. However, the company has consistently underperformed against the benchmark over the last three years, with a one-year return of -13.88% compared to the Sensex's -1.98%. This underperformance, coupled with reported losses and a negative EBITDA, suggests that while there may be short-term price movements, the long-term outlook remains precarious, indicating potential risks for investors.
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