Why is Kuantum Papers falling/rising?
As of 02-Jul, Kuantum Papers Ltd's stock price is at 117.95, down 0.97%. Despite a brief gain earlier in the day, the stock has been volatile and has significantly underperformed over the past year, primarily due to high debt levels and declining profits.
As of 02-Jul, Kuantum Papers Ltd's stock price is currently at 117.95, reflecting a decrease of 1.15 (-0.97%). Today, the stock opened with a gain of 5.71% but has since fallen, marking a trend reversal after two consecutive days of gains. The stock has been highly volatile, with an intraday volatility of 5.93%, and it underperformed its sector by 1.14%. Over the past week, the stock has shown a positive return of 1.20%, but it has significantly underperformed over the past year, with a return of -30.68%. Key negative factors impacting the stock include a high Debt to EBITDA ratio of 6.89 times, indicating a low ability to service debt, and a decline in profits by 37.3% over the past year. Despite a very attractive valuation with a ROCE of 10.2, the company has declared negative results for the last six consecutive quarters, which has contributed to investor concerns.Broader market context indicates that while the stock has shown a slight positive return in the short term, it has underperformed the benchmark Sensex, which has returned 0.79% over the past week. The stock's year-to-date performance is notably poor at -4.73%, contrasting sharply with the Sensex's gain of 6.75% during the same period. This underperformance, coupled with low domestic mutual fund interest, suggests a lack of confidence in the stock's future prospects, further exacerbating its decline in price.
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