Why is Orient Press falling/rising?
As of 23-Sep, Orient Press Ltd is priced at Rs 86.59, showing a short-term gain but a significant long-term underperformance with a year-to-date return of -26.02%. The stock's weak fundamentals and high debt levels indicate that the recent price increase may not be sustainable.
As of 23-Sep, Orient Press Ltd is currently priced at Rs 86.59, reflecting an increase of Rs 1.75 or 2.06%. The stock has shown a positive trend today, outperforming its sector by 3.46% and reversing a two-day decline. Despite this short-term gain, the stock has underperformed over the longer term, with a year-to-date return of -26.02% and a one-year return of -16.82%. Key negative factors impacting the stock include a weak long-term fundamental strength, evidenced by a -184.47% CAGR growth in operating profits over the last five years, a high Debt to EBITDA ratio of 21.25 times, and reported losses leading to negative return on equity. These issues contribute to the stock's perception as a risky investment, despite the recent uptick in investor participation.Broader market context shows that while Orient Press has gained in the short term, it has significantly lagged behind the benchmark, with a one-week return of +0.35% compared to the Sensex's -0.34%. The stock's performance over the last three years has been consistently below that of the benchmark, which has seen a 41.31% increase. This underperformance, combined with the company's financial struggles and negative operating profits, suggests that the recent price rise may not be sustainable in the face of ongoing fundamental weaknesses.
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