Why is Milkfood falling/rising?
As of 26-Aug, Milkfood Ltd's stock price is at 73.52, down 0.31%, with a year-to-date decline of 34.94%. The company faces financial challenges, including negative earnings for three quarters and a high debt-to-EBITDA ratio, contributing to its significant underperformance compared to the market.
As of 26-Aug, Milkfood Ltd's stock price is currently at 73.52, reflecting a decrease of 0.23, or 0.31%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total decline of 3.63% during this period. Over the past week, the stock has seen a significant drop of 5.74%, and its year-to-date performance shows a staggering decline of 34.94%. The company's financial health is concerning, with a return on capital employed (ROCE) of only 5.6% and a high debt-to-EBITDA ratio of 4.98 times, indicating a weak ability to service debt. Additionally, Milkfood has reported negative results for the last three consecutive quarters, with net sales falling by 23.31% and profits decreasing by 64.3%, further contributing to the stock's downward trend.In the broader market context, Milkfood's performance has been notably worse than the benchmark, with the Sensex only declining by 1.05% over the past week. The stock's poor returns over the past year, which stand at -54.39%, starkly contrast with the Sensex's positive return of 3.39% year-to-date. This underperformance is compounded by a significant drop in investor participation, as evidenced by a 43.76% decrease in delivery volume compared to the five-day average. Overall, the combination of weak financial fundamentals, negative earnings reports, and declining investor interest has led to a continued fall in Milkfood's stock price.
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