Why is Latteys Industri falling/rising?
As of 04-Jul, Latteys Industries Ltd is priced at 24.93, down 3.93%. The stock has shown strong short-term performance but faces challenges with high debt and low profitability, resulting in a year-to-date decline of 22.36%.
As of 04-Jul, Latteys Industries Ltd is currently priced at 24.93, reflecting a decrease of 1.02, or 3.93%. The stock has shown strong performance in the short term, with a 1-week return of 16.66%, significantly outperforming the Sensex, which has declined by 0.69%. However, despite this recent uptick, the stock is underperforming its sector today by 5.07%. Positive factors contributing to the stock's movement include a higher profit after tax of Rs 1.43 Cr and record net sales of Rs 24.44 Cr for the quarter. Nevertheless, the company faces challenges, such as a high Debt to EBITDA ratio of 2.69 times, indicating a low ability to service debt, and a relatively low return on equity of 8.88%, which suggests limited profitability.In the broader market context, while Latteys Industries has generated a notable return of 42.87% over the past year, the benchmark Sensex has only increased by 4.77% in the same period, highlighting the stock's strong long-term performance. However, the stock's year-to-date performance shows a decline of 22.36%, contrasting with the Sensex's gain of 7.68%, indicating that the stock has struggled in the current market environment. This mixed performance, combined with concerns about debt and profitability, may be contributing to the stock's current decline despite its strong historical returns.
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