Why is Polson falling/rising?
As of 24-Sep, Polson Ltd. is facing a stock price decline to 12,110.30, down 1.09%, with a total drop of 3.65% over the last three days and a significant 19.80% decrease over the past year. Despite an attractive valuation, weak long-term fundamentals and consistent underperformance against the benchmark are contributing to investor concerns.
As of 24-Sep, Polson Ltd. is experiencing a decline in its stock price, currently at 12,110.30, which reflects a decrease of 134.05 or 1.09%. The stock has underperformed its sector today by 0.6% and has been on a consecutive fall for the last three days, resulting in a total drop of 3.65% during this period. Additionally, Polson's performance over the past year shows a significant decline of 19.80%, while its profits have increased by 9.1%. Despite having an attractive valuation with a return on capital employed (ROCE) of 5.5 and trading at a discount compared to peers, the stock's weak long-term fundamentals, including a -1.57% CAGR growth in operating profits over the last five years, contribute to its recent downward movement.In the broader market context, Polson's short-term return of -0.88% over the past week is slightly better than the benchmark Sensex, which has declined by 1.18%. However, the stock's year-to-date performance shows a stark contrast, with Polson down 9.62% compared to the Sensex's gain of 4.58%. This consistent underperformance against the benchmark over the last three years, coupled with a low average return on equity of 5.11%, indicates a lack of profitability per unit of shareholders' funds, further exacerbating investor concerns and contributing to the stock's decline.
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