Why is Olympia Industri falling/rising?
As of 11-Jul, Olympia Industries Ltd is priced at 39.15, showing a slight increase but has significantly underperformed over the past year with a 39.61% decline. Despite a 51% profit increase and a favorable PEG ratio of 0.3, the company faces challenges with weak long-term fundamentals and has underperformed against the benchmark Sensex.
As of 11-Jul, Olympia Industries Ltd is currently priced at 39.15, reflecting a rise of 0.16 or 0.41%. Today's price summary indicates that the stock has outperformed its sector by 1.46%, although it is trading higher than its 20-day moving averages but lower than its 5-day, 50-day, 100-day, and 200-day moving averages. Despite a significant decline of 39.61% over the past year, the company has seen a 51% increase in profits, leading to a favorable PEG ratio of 0.3. However, the stock faces challenges with a weak long-term fundamental strength, indicated by a low average Return on Capital Employed (ROCE) of 4.29% and a high Debt to EBITDA ratio of 7.98 times, which may hinder its ability to service debt.In the broader market context, the stock has underperformed compared to the benchmark Sensex, which has gained 5.58% year-to-date, while Olympia Industries has seen a decline of 17.67% in the same period. Over the past week, the stock has dropped by 3.33%, contrasting with the Sensex's decline of only 1.12%. This underperformance in both the short and long term suggests that while there may be some positive factors at play, such as attractive valuations and profit growth, the overall market sentiment and the company's financial health are contributing to its struggles.
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