Why is Keystone Realtor falling/rising?
As of 27-Jun, Keystone Realtors Ltd is experiencing a price increase to Rs 594.75, up 4.6% today, but has underperformed over the year with a return of -11.03%. Despite strong short-term gains and healthy long-term growth, concerns about high debt levels and low return on equity may impact its future performance.
As of 27-Jun, Keystone Realtors Ltd is experiencing a price increase, with its current price at Rs 594.75, reflecting a rise of Rs 26.15 or 4.6%. The stock has shown strong performance today, outperforming its sector by 5.73% and reaching an intraday high of Rs 597.65. Over the past week, the stock has gained 9.13%, and in the last month, it has increased by 12.22%. However, it is important to note that the stock has underperformed over the year, with a return of -11.03%. The company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 70.97% and operating profit rising by 42.72%. Despite these positives, the stock faces challenges, including a high Debt to EBITDA ratio of 4.31 times, indicating a low ability to service debt, and a relatively low return on equity of 5.79%.In the broader market context, the stock's recent performance has significantly outpaced the benchmark Sensex, which has only increased by 2.00% over the past week. This indicates that while Keystone Realtors is currently rising, it has consistently underperformed against the benchmark over the last three years. The stock's valuation remains expensive with a Price to Book Value of 2.7, despite trading at a discount compared to its peers' historical valuations. The falling investor participation, as evidenced by a 15.74% drop in delivery volume, may also pose a concern for future price movements. Overall, while the stock is rising in the short term, its long-term outlook remains clouded by debt concerns and historical underperformance.
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