Why is Kirl. Electric falling/rising?
As of 19-Sep, Kirloskar Electric Company Ltd's stock price is declining at 120.00, down 0.7%, with a total drop of 2.52% over the last three days and a year-to-date return of -31.45%. Weak fundamentals, high debt levels, and a significant portion of pledged shares contribute to its negative outlook compared to the broader market.
As of 19-Sep, Kirloskar Electric Company Ltd is experiencing a decline in its stock price, currently at 120.00, reflecting a decrease of 0.85, or 0.7%. The stock has underperformed its sector by 0.81% today and has been on a downward trend for the last three days, resulting in a total drop of 2.52% during this period. Over the past week, the stock has decreased by 1.80%, while its one-year performance shows a significant decline of 37.37%. The company's weak long-term fundamentals, indicated by a low Return on Capital Employed (ROCE) of 7.71% and a high Debt to EBITDA ratio of 3.75 times, contribute to its negative outlook. Additionally, the fact that 75.55% of promoter shares are pledged adds to the downward pressure on the stock price, especially in a falling market.Broader market context reveals that while the Sensex has gained 0.88% over the past week, Kirloskar Electric's performance has lagged behind, highlighting its struggles relative to the broader market. The stock's year-to-date return of -31.45% starkly contrasts with the Sensex's positive return of 5.74%, further emphasizing its underperformance. Despite a rise in investor participation, as evidenced by a 23.39% increase in delivery volume, the overall sentiment remains negative due to the company's flat financial results and significant profit decline of 154.4% over the past year.
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