Why is Muthoot Microfin falling/rising?
As of 28-Aug, Muthoot Microfin Ltd's stock price is Rs 153.30, having increased by 1.76% today. Despite strong long-term fundamentals, the stock has underperformed over the past year with a return of -34.57%, and concerns about its valuation and negative return on equity contribute to its volatility.
As of 28-Aug, Muthoot Microfin Ltd's stock price is currently at Rs 153.30, reflecting an increase of Rs 2.65 or 1.76%. Today, the stock has shown a positive performance, outperforming its sector by 2.83% and reversing a trend after two consecutive days of decline. It opened with a gain of 3.19% and reached an intraday high of Rs 155.8, which is a 3.42% increase. However, the stock has underperformed over the past week and month, with returns of -2.67% and -6.75%, respectively. Despite a strong long-term fundamental strength indicated by a 45.40% CAGR growth in net sales and positive quarterly results, the stock's return over the past year has been significantly negative at -34.57%, with profits falling by -149%.In the broader market context, Muthoot Microfin's recent performance contrasts with the benchmark, as it has underperformed the market, which has seen a decline of only -2.08% over the past year. The stock's liquidity remains adequate, but there has been a notable decrease in investor participation, with delivery volume dropping by 20.22% against the five-day average. Additionally, while high institutional holdings at 25.89% suggest confidence from larger investors, the company's negative return on equity of -12.6 and expensive valuation with a price-to-book ratio of 1 raise concerns about its long-term viability, contributing to the stock's volatility and recent price movements.
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