Why is Lambodhara Text. falling/rising?
As of 09-Sep, Lambodhara Textiles Ltd is priced at 126.50, with a recent slight increase but a significant decline of 31.99% over the past year. Despite attractive valuation metrics, concerns about long-term growth and negative market performance persist.
As of 09-Sep, Lambodhara Textiles Ltd is currently priced at 126.50, reflecting a slight increase of 0.05 or 0.04%. The stock has been gaining for the last two days, with a total return of 0.76% during this period. Despite this recent uptick, the stock has underperformed in the longer term, showing a decline of 31.99% over the past year. The company has an attractive valuation with a return on capital employed (ROCE) of 7.1 and a PEG ratio of 0.4, indicating that while profits have risen by 47.5%, the stock is trading at a discount compared to its peers. However, concerns about long-term growth persist, as evidenced by modest annual growth rates in net sales and operating profit, along with a significant portion of promoter shares being pledged, which could exert downward pressure on the stock.In the broader market context, the stock's performance over the past week has been negative at -2.13%, contrasting with the Sensex's gain of 1.18%. While the stock has shown some resilience in the short term, its long-term performance remains a concern, particularly as it has underperformed the BSE500 over various time frames. The recent increase in investor participation, indicated by rising delivery volumes, suggests some interest in the stock, but the overall negative sentiment surrounding its long-term growth prospects and recent flat results may continue to weigh on its price.
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