Why is Kirl. Electric falling/rising?
As of 17-Sep, Kirloskar Electric Company Ltd's stock price is at 123.00, reflecting a slight decline and significant underperformance over the year with a -29.73% year-to-date drop. The company faces challenges due to weak fundamentals and high promoter share pledging, contributing to its lagging performance compared to the broader market.
As of 17-Sep, Kirloskar Electric Company Ltd is experiencing a slight decline in its stock price, currently at 123.00, reflecting a change of -0.1 (-0.08%). The stock has underperformed its sector by 0.45% today, and while it is higher than its 5-day and 20-day moving averages, it remains below the 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has shown a return of +0.82%, but it has significantly underperformed over the longer term, with a year-to-date decline of -29.73% and a one-year drop of -37.82%. Key negative factors contributing to this decline include weak long-term fundamentals, as indicated by a low Return on Capital Employed (ROCE) of 7.71% and a high Debt to EBITDA ratio of 3.75 times. Additionally, 75.55% of promoter shares are pledged, which can exert downward pressure on the stock in a falling market.In the broader market context, the Sensex has increased by 1.56% over the past week, indicating that the stock's short-term performance is lagging behind the benchmark. While the market has shown resilience with a year-to-date return of +5.83%, Kirloskar Electric's significant decline of -29.73% highlights its struggles relative to the overall market. The company's flat results and declining investor participation, with a 46.9% drop in delivery volume, further underscore the challenges it faces in attracting investor confidence amidst a generally improving market.
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