Why is Jain Irrigation falling/rising?
As of 18-Sep, Jain Irrigation Systems Ltd's stock price is declining at 56.55, down 1.07%, and has underperformed its sector today. Despite a significant monthly increase of 17.69%, it has a negative annual return of 17.32%, influenced by poor management efficiency and high debt levels.
As of 18-Sep, Jain Irrigation Systems Ltd is experiencing a decline in its stock price, currently at 56.55, reflecting a decrease of 0.61 or 1.07%. The stock has underperformed its sector by 0.25% today, despite being higher than its 5-day, 20-day, 50-day, and 100-day moving averages, but lower than its 200-day moving average. Over the past week, the stock has seen a slight decline of 0.42%, while its performance over the last month shows a significant increase of 17.69%. However, the stock has generated a negative return of 17.32% over the past year, with profits falling by 46.5%. Contributing to the stock's recent movement are factors such as poor management efficiency indicated by a low Return on Capital Employed (ROCE) of 3.89%, a high Debt to EBITDA ratio of 8.85 times, and a significant portion of promoter shares being pledged, which adds downward pressure in a falling market.In the broader market context, the Sensex has increased by 1.80% over the past week, contrasting with Jain Irrigation's decline. While the stock has shown some positive long-term growth with an annual operating profit increase of 22.56%, its overall performance remains below par, particularly with a 16.92% decline year-to-date compared to the Sensex's 6.24% gain. The stock's liquidity is adequate for trading, but the falling investor participation, as evidenced by a 17.31% drop in delivery volume, suggests waning interest among investors, further contributing to the stock's downward trajectory.
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