Why is Milestone Global falling/rising?
As of 25-Jun, Milestone Global Ltd's stock price is Rs 27.25, up 4.81%, but the company faces significant challenges, including weak long-term growth and poor debt servicing ability. Despite recent gains, the overall outlook remains risky due to underperformance over the past year and negative operating profits.
As of 25-Jun, Milestone Global Ltd's stock price is currently at Rs 27.25, reflecting an increase of Rs 1.25, or 4.81%. The stock has been on an upward trend, gaining for the last four days and achieving a total return of 9.79% during this period. It has outperformed its sector by 4.64% today. However, despite this recent performance, the company faces significant challenges, including a weak long-term fundamental strength with a -12.26% CAGR growth in operating profits over the last five years and negative results for the last three consecutive quarters. The company's ability to service its debt is also weak, indicated by a poor EBIT to Interest ratio of 0.38, which may contribute to investor caution despite the recent price increase.In the broader market context, Milestone Global's short-term return of +4.33% over the past week significantly outpaces the Sensex's return of +1.61% during the same period. However, the stock has underperformed the market over the last year, with a return of -8.80% compared to the Sensex's +6.02%. This underperformance, combined with declining investor participation and negative operating profits, suggests that while the stock may be experiencing a temporary rise, the overall outlook remains risky and uncertain.
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