Why is Keerthi Indus falling/rising?
As of 25-Aug, Keerthi Industries Ltd's stock price is declining at 66.70, down 0.68%, and has significantly underperformed its sector and the broader market. The company faces serious financial challenges, including negative EBITDA, a high percentage of pledged shares, and substantial declines in sales and profits, making it a risky investment.
As of 25-Aug, Keerthi Industries Ltd is experiencing a decline in its stock price, currently at 66.70, reflecting a decrease of 0.46 or 0.68%. The stock has underperformed its sector by 0.95% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has dropped by 8.92%, and it has shown significant underperformance over longer periods, with a year-to-date decline of 24.20% and a staggering 42.15% drop over the past year. The company's financial health is concerning, as it has reported a negative EBITDA and a -217.26% CAGR growth in operating profits over the last five years, alongside a poor EBIT to Interest ratio of 0.47. Additionally, 44.65% of promoter shares are pledged, which adds downward pressure in a falling market.In the broader market context, the Sensex has shown a slight increase of 0.45% over the past week, contrasting sharply with Keerthi Industries' significant decline. This consistent underperformance against the benchmark, particularly over the last three years, highlights the company's struggles in generating returns compared to the overall market. The stock's negative performance is compounded by weak long-term fundamentals, including a 33.63% decline in net sales and a similar drop in profit after tax over the latest six months. The increase in pledged shares among promoters further exacerbates the stock's vulnerability, making it a risky investment in the current market environment.
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