Why is Jupiter Wagons falling/rising?
As of 11-Aug, Jupiter Wagons Ltd's stock price is declining at 330.00, down 2.05 (-0.62%), and has underperformed its sector and the broader market significantly, with a year-to-date decline of 34.13%. The company faces valuation concerns due to low ROCE and a high PEG ratio, despite a low Debt to Equity ratio.
As of 11-Aug, Jupiter Wagons Ltd is experiencing a decline in its stock price, currently at 330.00, which reflects a decrease of 2.05 (-0.62%). The stock has underperformed its sector by 1.01% today and has been on a downward trend, losing 2.55% over the last two days. Additionally, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has fallen by 3.18%, and it has seen a significant decline of 40.39% over the past year, while its profits have only risen by 15.3%. The company has a low Debt to Equity ratio of 0.08 times, but its return on capital employed (ROCE) is at a low of 17.09%, contributing to concerns about its valuation.In the broader market context, Jupiter Wagons has significantly underperformed compared to the Sensex, which has only declined by 0.51% over the past week and generated a positive return of 3.15% year-to-date. The stock's performance is particularly concerning given that it has fallen much more sharply than the market average, with a year-to-date decline of 34.13% compared to the Sensex's positive return. This stark contrast highlights the challenges the company faces, including flat results and a high price-to-earnings growth (PEG) ratio of 3.1, indicating that the stock may be overvalued relative to its growth prospects.
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