Why is Mehai Technology falling/rising?
As of 09-Oct, Mehai Technology Ltd's stock price is declining at 8.51, down 3.62%, and has underperformed its sector. Despite strong long-term growth, recent performance is affected by poor management efficiency and high debt levels, leading to a lack of confidence reflected in zero domestic mutual fund investment.
As of 09-Oct, Mehai Technology Ltd is experiencing a decline in its stock price, currently at 8.51, which reflects a decrease of 0.32 or 3.62%. The stock has underperformed its sector by 3.58% today and has been on a consecutive downward trend for the last three days, resulting in a total decline of 9.76% during this period. Additionally, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite the company showing impressive long-term growth with net sales increasing at an annual rate of 186.25% and a significant rise in operating profit, the stock's recent performance is hindered by poor management efficiency, as indicated by a low return on capital employed (ROCE) of 5.99% and a high debt to EBITDA ratio of 4.04 times, which raises concerns about its ability to service debt.In the broader market context, Mehai Technology's short-term performance has been notably weak, with a 1-week return of -5.13%, contrasting sharply with the Sensex, which has gained 1.47% over the same period. While the stock has generated a substantial return of 49.94% over the past year, it is essential to note that this performance comes amidst a backdrop of negative returns in the broader market, where the BSE500 has declined by 1.92%. The lack of domestic mutual fund investment, holding only 0% of the company, may indicate a lack of confidence in its current valuation or business prospects, further contributing to the stock's downward pressure.
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