Why is Krypton Industri falling/rising?
As of 13-Jun, Krypton Industries Ltd's stock price is Rs 45.23, down 3.5%, and has lost 9.07% over the last four days. The company faces significant financial instability with an 89% profit decline over the past year and underperformance compared to its sector and the broader market.
As of 13-Jun, Krypton Industries Ltd is experiencing a decline in its stock price, currently at Rs 45.23, which represents a decrease of Rs 1.64 or 3.5%. The stock has underperformed its sector by 3.43% today and has been on a downward trend for the last four days, accumulating a total loss of 9.07% during this period. It opened with a significant gap down of 4.97% and reached an intraday low of Rs 44.54. Additionally, the stock is trading below all its moving averages, indicating a bearish trend. The company has seen a drastic fall in profits by 89% over the past year, contributing to a negative return of -2.90%, despite having an attractive valuation based on its ROCE of 7.5 and trading at a discount compared to peers.In the broader market context, Krypton Industries' short-term performance has been notably worse than the benchmark, with a 1-week return of -6.65% compared to the Sensex's -1.30%. This stark contrast highlights the stock's struggles relative to the overall market. The company's weak long-term fundamentals, including a low average Return on Capital Employed (ROCE) of 6.04% and poor growth in net sales, further exacerbate investor concerns. The high debt-equity ratio and low operating profit to interest ratio indicate financial instability, leading to decreased investor participation, as evidenced by a significant drop in delivery volume. Overall, these factors contribute to a bearish sentiment surrounding Krypton Industries, resulting in its declining stock price.
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