Why is Indian Hume Pipe falling/rising?
As of 23-Sep, Indian Hume Pipe Company Ltd's stock price is declining at 378.00, down 0.05%, and has underperformed its sector by 0.79%. The stock has fallen 4.01% over the last four days and has a yearly return of -25.76%, attributed to high debt, low profitability, and decreased investor participation.
As of 23-Sep, Indian Hume Pipe Company Ltd is experiencing a decline in its stock price, currently at 378.00, which reflects a decrease of 0.2 or 0.05%. The stock has underperformed its sector by 0.79% today and has been on a downward trend for the last four days, resulting in a total decline of 4.01% during this period. Additionally, the stock is trading below all key moving averages, indicating a bearish sentiment. Over the past year, the stock has generated a return of -25.76%, significantly worse than the broader market's decline of -3.33%. Factors contributing to this decline include a high Debt to EBITDA ratio of 2.83 times, low profitability as indicated by a Return on Equity of 6, and a significant drop in profits over the past year, which fell by 17.7%.Broader Market Context: In the context of the broader market, Indian Hume Pipe's short-term performance has been notably weaker than the benchmark, with a 1-week return of -2.59% compared to the Sensex's decline of only -0.34%. This underperformance is compounded by a decrease in investor participation, as evidenced by a 28.56% drop in delivery volume against the 5-day average. The company's financial struggles, including a substantial fall in profit before tax and profit after tax in the latest quarter, alongside a high percentage of pledged promoter shares, further contribute to the negative sentiment surrounding the stock.
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