Why is Kanco Tea falling/rising?
As of 13-Aug, Kanco Tea & Industries Ltd's stock price is Rs 64.00, reflecting a decline and nearing its 52-week low. The company has weak long-term fundamentals and has underperformed against the benchmark, making it a strong sell in the current market.
As of 13-Aug, Kanco Tea & Industries Ltd is experiencing a decline in its stock price, currently at Rs 64.00, which reflects a decrease of 0.25 (-0.39%). The stock is close to its 52-week low, being only 3.75% away from Rs 61.6, and has underperformed its sector by 1.08% today. Over the past week, the stock has shown a modest gain of 1.75%, but its performance over the last month has been significantly negative, with a decline of 9.73%. The stock's long-term fundamentals are weak, evidenced by a staggering -193.01% CAGR growth in operating profits over the last five years and a poor EBIT to Interest ratio of 0.36, indicating difficulties in servicing its debt. Additionally, the stock has consistently underperformed against the benchmark, with a one-year return of -14.79% compared to the Sensex's positive return of 2.01%.In the broader market context, Kanco Tea's recent performance contrasts with the benchmark, as it has generated a negative return while the Sensex has shown resilience with a slight decline of only 0.01% over the past week. The company's liquidity appears adequate for trading, but there has been a notable drop in investor participation, with delivery volume falling by 35.99% against the five-day average. This lack of interest, combined with the company's weak profitability metrics and negative EBITDA, contributes to a perception of risk surrounding the stock, reinforcing its status as a strong sell in the current market environment.
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