Why is Kritika Wires falling/rising?
As of 23-Sep, Kritika Wires Ltd is priced at 9.18, down 0.33%, and has significantly underperformed with a year-to-date decline of 19.54% and a 56.53% drop over the past year. Weak fundamentals, including negative profit growth and high debt levels, contribute to poor investor sentiment despite a recent slight increase in stock price.
As of 23-Sep, Kritika Wires Ltd is currently priced at 9.18, reflecting a decrease of 0.03 or 0.33%. The stock has underperformed its sector today by 1.62%, with a delivery volume that has fallen by 6.53% compared to the 5-day average. Over the past week, the stock has shown a slight increase of 0.22%, but it has significantly underperformed over the longer term, with a year-to-date decline of 19.54% and a staggering 56.53% drop over the past year. The company’s weak fundamentals are highlighted by a negative CAGR growth in operating profits over the last five years and a high debt to EBITDA ratio, which indicates challenges in servicing debt. Additionally, despite trading at a discount compared to peers, the stock's profitability remains low, as evidenced by a return on capital employed of only 3.6%.In the broader market context, while the Sensex has shown a positive return of 6.45% year-to-date, Kritika Wires has struggled significantly, indicating a stark contrast in performance. The stock's recent performance of +3.03% over the past month is overshadowed by its long-term underperformance, particularly in the last year where it has lost more than half its value. This divergence suggests that investor sentiment towards Kritika Wires is weak, compounded by flat quarterly results and declining profits, which further diminishes confidence in the stock's future prospects.
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