Why is Marathon Nextgen falling/rising?
As of 03-Jul, Marathon Nextgen Realty Ltd's stock price is declining at 655.00, down 1.09% after five days of gains, despite a strong 24.86% return over the past month. The company faces challenges with low ROCE, high debt ratios, and a significant portion of promoter shares pledged, contributing to a cautious investor outlook.
As of 03-Jul, Marathon Nextgen Realty Ltd is experiencing a decline in its stock price, currently at 655.00, which reflects a decrease of 7.2 points or 1.09%. Today's price summary indicates that the stock has underperformed its sector by 0.74% and has fallen after five consecutive days of gains. The stock touched an intraday low of Rs 639.1, marking a decline of 3.49%. Despite this drop, Marathon Nextgen has shown strong performance over the past month with a return of 24.86%, and it has consistently outperformed the BSE500 over the last three years. However, the company faces challenges, including a weak long-term fundamental strength indicated by a low Return on Capital Employed (ROCE) of 9.25% and a high Debt to EBITDA ratio of 6.55 times. Additionally, 91.46% of promoter shares are pledged, which can exert downward pressure on stock prices in a declining market.In the broader market context, Marathon Nextgen's short-term performance contrasts with the Sensex, which has seen a decline of 0.62% over the past week. While the stock has shown resilience with a 3.41% increase in the same period, the recent price drop suggests a shift in investor sentiment, possibly influenced by falling investor participation, as evidenced by a 38.78% decrease in delivery volume against the five-day average. The company's negative financial results, including a significant drop in net sales and a concerning interest growth rate, further contribute to the cautious outlook among investors, leading to the current decline in stock price.
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