Why is Kinetic Engg. falling/rising?
As of 04-Jul, Kinetic Engineering Ltd's stock price is Rs 261.90, down 1.3% today and 6.16% over the last four days. Despite strong long-term gains, concerns about its fundamental strength and recent declines in investor participation are affecting its current performance.
As of 04-Jul, Kinetic Engineering Ltd's stock price is currently at Rs 261.90, reflecting a decrease of Rs 3.45 or 1.3%. The stock has been underperforming, having lost 6.16% over the last four days, and today it underperformed its sector by 1.97%. Despite touching an intraday high of Rs 273.9, the stock traded more volume close to its low of Rs 260. The stock has shown strong performance over longer periods, with a 34.48% increase over the past month and a remarkable 241.02% rise over the last three years. However, there are concerns regarding its long-term fundamental strength, as indicated by a low average Return on Capital Employed (ROCE) of 0.94% and a negative EBIT to Interest ratio, which may be contributing to the recent decline in price.In the broader market context, Kinetic Engineering Ltd has outperformed the Sensex over various time frames, including a 58.25% year-to-date return compared to the Sensex's 6.77%. However, the stock's recent performance contrasts with this longer-term success, as it has been experiencing a decline amidst falling investor participation, with delivery volume decreasing by 40.75% against the five-day average. While the increase in promoter stake by 2.17% signals confidence in the company's future, the flat quarterly results and negative operating profits raise concerns about its sustainability, which may be influencing investor sentiment and contributing to the stock's current downward movement.
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