Why is Mahalaxmi Fab. falling/rising?
As of 19-Sep, Mahalaxmi Fabric Mills Ltd's stock price has risen to 32.40, reflecting a 2.05% increase, but it faces significant long-term challenges, including weak fundamentals and a year-to-date decline of 34.41%. Despite recent short-term gains, the stock's volatility and poor growth prospects may deter investors.
As of 19-Sep, Mahalaxmi Fabric Mills Ltd is experiencing a price increase, with its current price at 32.40, reflecting a change of 0.65 or 2.05% upward. The stock has outperformed its sector by 1.85% today, and it is trading higher than its 5-day, 20-day, 50-day, and 100-day moving averages, although it remains below its 200-day moving average. Over the past week, the stock has risen by 1.89%, and in the last month, it has increased by 7.14%. However, the company faces significant challenges, including a weak long-term fundamental strength indicated by an average Return on Capital Employed (ROCE) of 0% and a concerning decline in operating profit over the past five years. Additionally, the company's ability to service its debt is weak, as evidenced by a poor EBIT to Interest ratio of 0.38, and it has reported a substantial drop in net sales and profits in recent quarters.In the broader market context, the stock's short-term performance has been favorable compared to the benchmark, with a 1-week return of 1.89% against the Sensex's 0.88% and a 1-month return of 7.14% versus the Sensex's 1.20%. Despite this positive short-term movement, the stock has significantly underperformed over the longer term, with a year-to-date decline of 34.41% compared to a 5.74% rise in the benchmark. This stark contrast highlights the stock's volatility and the risks associated with its poor long-term growth prospects, which may deter investors despite the recent uptick in price.
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