Why is Laxmi Organic falling/rising?
As of 04-Sep, Laxmi Organic Industries Ltd is priced at 214.05, down 1.38%, but has gained 3.93% over the past week and 11.66% over the past month. Despite short-term performance, the company faces long-term challenges, including declining profitability and a low return on capital employed.
As of 04-Sep, Laxmi Organic Industries Ltd is currently priced at 214.05, reflecting a decrease of 3.0 or 1.38%. The stock has shown a positive performance over the past week with a return of 3.93%, and a notable increase of 11.66% over the past month. Today's trading activity indicates that Laxmi Organic is performing in line with its sector, with the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, there has been a significant rise in investor participation, as evidenced by a 68.94% increase in delivery volume compared to the 5-day average. However, the company faces challenges, including a poor long-term growth outlook with an annual operating profit decline of 17.98% over the last five years and a low return on capital employed (ROCE) of 8.36%. In the broader market context, while Laxmi Organic has outperformed the Sensex in the short term, it has consistently underperformed against the benchmark over the last three years, with a year-to-date return of -11.90% compared to the Sensex's 3.30%. The stock's long-term performance has been particularly concerning, with a return of -27.50% over the past year, indicating a significant decline in profitability, which has fallen by 13.7%. Despite trading at a discount compared to its peers, the stock's expensive valuation, indicated by a price-to-book value of 3.1, raises concerns among investors. Overall, the combination of short-term gains and long-term challenges contributes to the stock's current price movement.
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