Why is Inox Wind falling/rising?
As of 18-Nov, Inox Wind Ltd's stock price is Rs 140.90, down 3.56%, and has underperformed with a year-to-date decline of 22.15%. Despite healthy long-term growth, challenges like a high Debt to EBITDA ratio and low return on equity may deter investors.
As of 18-Nov, Inox Wind Ltd's stock price is currently at Rs 140.90, reflecting a decrease of Rs 5.2 or 3.56%. The stock has been underperforming, having fallen consecutively for the last two days with a total decline of 5.37%. It is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Over the past week, the stock has decreased by 7.21%, and it has significantly underperformed the market with a year-to-date decline of 22.15%. While the company has shown healthy long-term growth with a 45.68% annual increase in net sales and a 32.48% rise in operating profit, it faces challenges such as a high Debt to EBITDA ratio of 3.12 times and a low return on equity of 2.29%, which may deter investors.In the broader market context, the Sensex has shown a positive return of 0.96% over the past week, contrasting sharply with Inox Wind's decline. This underperformance is further highlighted by the stock's negative return of 25.74% over the past year, while the broader market has gained 8.36%. The renewable energy sector, in which Inox Wind operates, has also seen a decline of 2.03%, contributing to the stock's downward pressure. Despite a notable increase in investor participation, with delivery volume rising by 357.85%, the overall sentiment remains cautious due to the company's financial metrics and its inability to service debt effectively.
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