Why is JBM Auto falling/rising?
As of 07-Jul, JBM Auto Ltd's stock price is declining at 636.05, down 1.75%, and has underperformed its sector and the market significantly over the past month and year. The company faces financial challenges, including a high Debt to EBITDA ratio and low investor confidence, as indicated by a substantial drop in delivery volume and minimal mutual fund holdings.
As of 07-Jul, JBM Auto Ltd is experiencing a decline in its stock price, currently at 636.05, which reflects a decrease of 11.3 points or 1.75%. The stock has underperformed its sector by 1.29% today and has been on a downward trend for the last two days, with a total decline of 1.88%. Additionally, the stock has touched an intraday low of Rs 632, indicating a significant drop. Over the past week, JBM Auto has seen a return of -1.15%, and its performance over the last month is even more concerning, with a decline of 10.52%. The company faces challenges such as a high Debt to EBITDA ratio of 3.86 times, which indicates a low ability to service debt, and a disappointing Debtors Turnover Ratio at 5.43 times. Despite a healthy long-term growth in net sales and operating profit, the stock's valuation appears expensive with a PEG ratio of 5.8, and it has significantly underperformed the market over the past year, generating a return of -40.84%.In the broader market context, the Sensex has shown a slight decline of 0.20% over the past week, while JBM Auto's performance has been notably worse, indicating a significant underperformance relative to the benchmark. The stock's year-to-date performance is down 17.08%, contrasting sharply with the Sensex's gain of 6.79% during the same period. This divergence suggests that investor sentiment towards JBM Auto is weak, as evidenced by a 62.02% drop in delivery volume compared to the five-day average. The limited interest from domestic mutual funds, holding only 0.22% of the company, further reflects a lack of confidence in the stock's current valuation and future prospects.
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