Why is Natl. Plastic falling/rising?
As of 19-Sep, National Plastic Industries Ltd's stock price is Rs 58.30, down 3.62%, and has underperformed its sector by 2.96%. Despite a 126% profit increase over the past year, the stock has declined 10.17% year-to-date, indicating concerns about its high debt levels and weak long-term growth prospects.
As of 19-Sep, National Plastic Industries Ltd is experiencing a decline in its stock price, currently at Rs 58.30, which represents a decrease of Rs 2.19 or 3.62%. The stock has underperformed its sector by 2.96% today, reaching an intraday high of Rs 61.85 and a low of Rs 58.01. Over the past week, the stock has declined by 2.43%, and it has shown a significant drop of 10.17% year-to-date. Despite a notable increase in profits by 126% over the past year, the stock has generated a negative return of 13.44% during the same period, indicating a disconnect between profitability and stock performance. The company has a high Debt to EBITDA ratio of 4.03 times, which raises concerns about its ability to service debt, contributing to its weak long-term fundamental strength.In the broader market context, the Sensex has increased by 0.88% over the past week, contrasting with National Plastic's decline, which highlights the stock's underperformance relative to the market. The stock's liquidity appears to be sufficient for trading, but there has been a notable decrease in investor participation, with delivery volume falling by 54.44% against the five-day average. This lack of interest, combined with the company's poor long-term growth prospects and flat quarterly results, suggests that investors may be cautious about the stock's future performance, leading to its current downward trend.
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