Why is Orient Green falling/rising?
As of 08-Jul, Orient Green Power Company Ltd's stock price is at 14.90, down 0.67%, and has underperformed its sector. Despite recent increases in investor participation, the long-term outlook is weak due to low profitability, high debt levels, and significant underperformance compared to market benchmarks.
As of 08-Jul, Orient Green Power Company Ltd is experiencing a decline in its stock price, currently at 14.90, reflecting a decrease of 0.1 or 0.67%. The stock has underperformed its sector today by 1.43%, despite showing higher performance than its 5-day, 20-day, 50-day, and 100-day moving averages, although it remains below the 200-day moving average. Notably, there has been a significant increase in investor participation, with a delivery volume of 54.86 lacs on July 7, which is up by 73.48% compared to the 5-day average. Over the past week, the stock has decreased by 1.26%, while it has shown a positive return of 12.20% over the last month. However, the long-term outlook appears weak, with a -7.26% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 5.14 times, indicating challenges in servicing debt and low profitability.In the broader market context, the stock has significantly underperformed compared to the benchmark, with a return of -28.17% over the past year against the BSE500's positive return of 1.98%. This underperformance is compounded by the fact that domestic mutual funds hold no stake in the company, suggesting a lack of confidence in its valuation and business prospects. The company's return on equity is low at 2.87%, and its valuation appears expensive with a ROCE of 5.9 and a 1.5 Enterprise value to Capital Employed ratio. These factors contribute to the stock's current downward movement, reflecting investor concerns about its long-term viability and profitability.
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