Why is Orient Paper falling/rising?
As of 18-Jul, Orient Paper & Industries Ltd is facing a decline in stock price, currently at 29.34, with a significant drop of 48.30% over the past year compared to a minor decline in the benchmark Sensex. The company's weak fundamentals, negative EBITDA, and lack of investor confidence contribute to its poor performance and declining stock value.
As of 18-Jul, Orient Paper & Industries Ltd is experiencing a decline in its stock price, currently at 29.34, which reflects a decrease of 0.2 or 0.68%. The stock has been underperforming recently, having lost 1.11% over the last two days and showing a negative return of 1.44% over the past week. Additionally, the stock's delivery volume has decreased by 23.19% compared to its 5-day average, indicating falling investor participation. Over the past year, the stock has significantly underperformed, with a return of -48.30%, while the benchmark Sensex has only fallen by 0.51%. The company's fundamentals are weak, as it has reported operating losses and negative results for the last three consecutive quarters, contributing to its poor performance.Broader market context shows that while the Sensex has generated a positive return of 4.63% year-to-date, Orient Paper has seen a substantial decline of 20.38% in the same period. The stock's performance is further compounded by its negative EBITDA and a weak ability to service its debt, as indicated by a poor EBIT to Interest ratio. The lack of investment from domestic mutual funds, which hold 0% of the company, suggests a lack of confidence in its future prospects. Overall, the combination of weak financial performance, declining investor interest, and significant underperformance relative to the market has led to the current downward trend in Orient Paper's stock price.
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