Why is JBM Auto falling/rising?
As of 03-Jul, JBM Auto Ltd's stock price is 648.25, showing a slight increase but underperforming its sector. Despite some positive growth indicators, high debt levels and significant historical underperformance are affecting investor confidence and the stock's current price movements.
As of 03-Jul, JBM Auto Ltd's stock price is currently at 648.25, reflecting an increase of 1.05, or 0.16%. Today's price summary indicates that the stock has underperformed its sector by 0.89%, and while it is higher than the 5-day and 100-day moving averages, it remains below the 20-day, 50-day, and 200-day moving averages. The stock has shown a mixed performance over various periods, with a 1-week return of +0.74% contrasting sharply with a 1-month decline of -8.49% and a year-to-date drop of -15.49%. Additionally, the company has a high Debt to EBITDA ratio of 3.86 times, indicating a low ability to service its debt, which may contribute to investor caution. Despite a healthy long-term growth in net sales and operating profit, the stock's performance has been hindered by a significant underperformance over the past year, generating a return of -39.56%.In the broader market context, JBM Auto's recent short-term return of +0.74% over the past week stands in contrast to the Sensex, which has declined by -0.62% during the same period. However, the stock's longer-term performance has been disappointing, particularly when compared to the benchmark, which has gained 3.10% over the last month and 6.53% year-to-date. This underperformance may reflect broader market sentiments, as domestic mutual funds hold only a small stake of 0.22% in the company, suggesting a lack of confidence in its current valuation or business prospects. Overall, while there are some positive growth indicators, the stock's high debt levels and significant historical underperformance relative to the market are likely contributing to its current price movements.
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