Why is Longview Tea falling/rising?
As of 07-Jul, Longview Tea Company Ltd's stock price is Rs 31.55, down 5.0%, and has underperformed its sector significantly. The company faces operating losses, poor debt servicing ability, and a substantial decline in stock performance, making it a risky investment.
As of 07-Jul, Longview Tea Company Ltd is experiencing a decline in its stock price, currently at Rs 31.55, reflecting a decrease of 1.66 (-5.0%). The stock has underperformed its sector by 5.45% today and opened with a loss of 5%. It has not traded on 4 out of the last 20 days, indicating erratic trading patterns. Additionally, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past month, the stock has seen a significant decline of 12.12%, and its year-to-date performance shows a drop of 36.13%. The company has reported operating losses, with a weak ability to service its debt, reflected in a poor EBIT to Interest ratio of -0.90, and negative returns on capital employed (ROCE). These factors contribute to the stock's current downward trend.In the broader market context, the Sensex has shown a slight decline of 0.20% over the past week, while Longview Tea's performance has been significantly worse, with a 12.12% drop over the past month. This stark contrast highlights the stock's underperformance relative to the benchmark. The company's flat results, including the lowest reported earnings per share and negative EBITDA, further exacerbate its weak long-term fundamental strength, making it a risky investment. Overall, the combination of poor financial performance, declining investor participation, and unfavorable market conditions has led to the stock's current decline.
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