Why is Lak. Electrical falling/rising?
As of 01-Jul, Lakshmi Electrical Control Systems Ltd's stock price has risen to Rs 1,080.50, reflecting a 5.41% increase, but the company faces significant challenges with a low ROE of 5.08% and negative results over the past six quarters, leading to a year-to-date decline of -12.44%. Despite recent short-term gains, the long-term outlook remains weak due to poor management efficiency and declining profitability.
As of 01-Jul, Lakshmi Electrical Control Systems Ltd is experiencing a price increase, currently at Rs 1,080.50, which reflects a rise of Rs 55.5 or 5.41%. The stock has outperformed its sector by 5.17% today, reaching an intraday high of Rs 1,100, which is a 7.32% increase. Over the past week, the stock has shown a return of +11.50%, while its performance over the last month is +10.26%. However, despite this recent uptick, the company has faced significant challenges, including a low Return on Equity (ROE) of 5.08% and negative results for the last six consecutive quarters, which have contributed to a year-to-date decline of -12.44% and a one-year return of -31.70%.In the broader market context, while the stock has shown positive short-term returns, it has significantly underperformed the benchmark, with the Sensex gaining +2.00% over the past week and +2.76% over the past month. The company's long-term growth prospects appear weak, with net sales growing at an annual rate of only 13.40% over the last five years, and a negative profit trend of -72.3% over the past year. This combination of short-term gains against a backdrop of poor management efficiency and declining profitability suggests that while the stock may be rising in the short term, the overall outlook remains concerning.
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