Why is NMDC Steel falling/rising?
As of 25-Aug, NMDC Steel Ltd's stock price is at 39.09, showing a slight increase but a negative trend over the past week and year-to-date. Despite recent gains, the stock's long-term outlook is concerning due to poor fundamentals and high debt levels, making it a risky investment.
As of 25-Aug, NMDC Steel Ltd's stock price is currently at 39.09, reflecting an increase of 0.31 or 0.8%. The stock has shown a trend reversal, gaining after two consecutive days of decline, and has outperformed its sector by 0.29%. However, the stock's performance over the past week has been negative, with a decline of 1.88%, while it has seen a modest increase of 1.88% over the past month. Despite positive results in net sales growth and strong quarterly performance, the stock has a concerning long-term outlook, with a return on capital employed of 0% and a high debt to EBITDA ratio, which raises questions about its ability to sustain growth.In the broader market context, NMDC Steel's recent performance contrasts with the Sensex, which has gained 0.45% over the past week. The stock's year-to-date performance is particularly troubling, showing a decline of 9.45% compared to the Sensex's increase of 4.48%. This underperformance is compounded by a significant drop in investor participation, with delivery volume falling by 48.62% against the five-day average. While high institutional holdings may provide some stability, the overall weak long-term fundamentals and negative EBITDA position the stock as risky, contributing to its recent price movements.
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