Why is Jay Ushin falling/rising?
As of 02-Sep, Jay Ushin Ltd's stock price has risen to 706.00, reflecting an 8.62% increase, while outperforming its sector. However, concerns about its long-term fundamentals, including low ROCE and high debt levels, suggest a cautious outlook despite recent gains.
As of 02-Sep, Jay Ushin Ltd is experiencing a price increase, currently at 706.00, reflecting a rise of 56.0 or 8.62%. The stock has outperformed its sector today by 8.36%, opening with a gain of 6.92% and reaching an intraday high of Rs 715, which is a 10% increase. Despite this positive movement, the stock has shown erratic trading patterns, not trading on 2 out of the last 20 days, and has seen a significant drop in delivery volume, which fell by 87.34% against the 5-day average. While the stock has generated a return of -4.72% over the past year, its profits have increased by 0.4%, and it is trading at a discount compared to its peers' average historical valuations, indicating some attractive valuation metrics.In the broader market context, Jay Ushin's short-term performance over the past week shows a gain of 4.44%, contrasting with the Sensex, which has declined by 0.78%. This indicates that the stock is gaining traction relative to the broader market. However, concerns remain regarding its long-term fundamental strength, as evidenced by a low average Return on Capital Employed (ROCE) of 5.98% and a high Debt to EBITDA ratio of 4.71 times, which may hinder future growth. The company's flat results in June and low cash reserves further contribute to a cautious outlook, despite the recent price increase.
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