Why is JSW Energy falling/rising?
As of 26-Aug, JSW Energy Ltd's stock price is at 512.65, down 1.6%, with a year-to-date decline of 20.22%. The company faces challenges such as low management efficiency and high debt levels, contributing to its significant underperformance compared to the market.
As of 26-Aug, JSW Energy Ltd's stock price is currently at 512.65, reflecting a decrease of 8.35, or 1.6%. The stock has shown a decline of 3.97% over the past week and 0.94% over the past month, while it has significantly underperformed year-to-date with a drop of 20.22%. Despite a healthy long-term growth rate in operating profit of 21.51% and high institutional holdings at 23.8%, the company faces challenges such as poor management efficiency indicated by a low Return on Capital Employed (ROCE) of 7.34% and a high Debt to EBITDA ratio of 4.71 times. Additionally, the stock's recent performance has been impacted by flat results in June, with a ROCE of 5.78% and a high debt-equity ratio of 1.83 times, contributing to its valuation concerns.In the broader market context, the stock's performance has been notably worse than the benchmark, with a one-year return of -28.34% compared to the Sensex's decline of only 1.12%. This stark contrast highlights the stock's underperformance relative to the market, suggesting that investor sentiment may be negatively influenced by the company's financial metrics and management efficiency. Although there has been rising investor participation, as evidenced by a 54.13% increase in delivery volume, the overall market conditions and the company's financial challenges continue to weigh heavily on its stock price.
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