Why is Oriental Rail falling/rising?
As of 17-Jul, Oriental Rail Infrastructure Ltd's stock is priced at Rs 174.00, down 2.08%, and has underperformed its sector today. The stock has faced significant challenges, including high debt levels and a 58.19% decline in profits over the past year, contributing to negative market sentiment.
As of 17-Jul, Oriental Rail Infrastructure Ltd's stock is currently priced at Rs 174.00, reflecting a decrease of Rs 3.7 or 2.08%. The stock has underperformed its sector by 1.46% today, having touched an intraday low of Rs 173. Over the past week, the stock has declined by 3.25%, while it has shown a positive return of 8.07% over the past month. Despite being higher than the 20-day, 50-day, and 100-day moving averages, it remains lower than the 5-day and 200-day moving averages. The company has a return on capital employed (ROCE) of 11.7, indicating fair valuation, but it is trading at a discount compared to its peers. However, the stock has faced significant challenges, including a high Debt to EBITDA ratio of 5.02 times and a substantial decline in profits, with a 58.19% drop in returns over the last year.In the broader market context, the Sensex has decreased by 1.12% over the past week, which indicates that while Oriental Rail has underperformed relative to the benchmark, the overall market is also experiencing a downturn. The stock's long-term performance has been poor, with a 58.19% decline in the last year and a lack of domestic mutual fund investment, suggesting a lack of confidence in the company's future prospects. Additionally, the company's operating profit growth has been stagnant, further contributing to the negative sentiment surrounding the stock. Overall, the combination of high debt levels, declining profits, and underperformance compared to both the sector and the broader market has led to the stock's current downward movement.
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