Why is Inox Wind falling/rising?
As of 01-Sep, Inox Wind Ltd's stock price is 141.05, having increased by 1.88% recently, but it has declined 7.05% over the past month. Despite strong long-term growth in sales and profits, high debt levels and underperformance compared to the broader market may concern investors.
As of 01-Sep, Inox Wind Ltd's stock price is currently at 141.05, reflecting an increase of 2.6, or 1.88%. The stock has been gaining for the last two days, with a total return of 3.14% during this period. Despite this recent uptick, the stock has underperformed over the past month, showing a decline of 7.05%. Positive factors contributing to the stock's movement include strong long-term growth, with net sales increasing at an annual rate of 44.36% and a remarkable net profit growth of 134.05%. However, the company faces challenges, such as a high Debt to EBITDA ratio of 4.46 times, indicating a low ability to service debt, which may weigh on investor sentiment.Broader Market Context: In the short term, Inox Wind's performance has been somewhat aligned with the renewable energy sector, which has gained by 2.16%. However, when compared to the benchmark Sensex, Inox Wind's 1-week return of -1.23% is better than the Sensex's decline of -1.56%, suggesting that while the stock is experiencing some positive momentum, it still lags behind the broader market over longer periods, particularly with a year-to-date decline of 22.07% compared to the Sensex's gain of 2.85%. This underperformance relative to the market could be a concern for potential investors.
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