Why is Hind.Urban Infra falling/rising?
As of 05-Sep, Hindusthan Urban Infrastructure Ltd is priced at Rs 2,370.00, down 0.04%. Despite recent short-term gains, the company faces a challenging outlook due to significant long-term losses, high debt levels, and consistent underperformance against market benchmarks.
As of 05-Sep, Hindusthan Urban Infrastructure Ltd is currently priced at Rs 2,370.00, reflecting a decrease of Rs 1.0 or 0.04%. The stock has shown a performance today that outperformed its sector by 0.33%, although it touched an intraday low of Rs 2,322.05, indicating a decline of 2.06%. Over the past week, the stock has increased by 3.27%, and over the past month, it has risen by 10.17%. However, the stock has a concerning long-term outlook, with a -225.15% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 15.67 times, which negatively impacts its ability to service debt. Additionally, the company has reported losses, with a negative return on equity and a significant decline in profits, contributing to its overall weak performance.In the broader market context, while Hindusthan Urban Infrastructure has outperformed the Sensex by 2.14% over the past week, it has underperformed the benchmark over the longer term, with a year-to-date return of -6.80% compared to the Sensex's 3.29%. The stock's consistent underperformance against the benchmark over the last three years, coupled with negative EBITDA and declining sales, suggests a challenging environment for the company. Despite some short-term gains, the overall negative sentiment surrounding its financial health and performance metrics indicates a cautious outlook for investors.
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