Why is Porwal Auto Comp falling/rising?
As of 23-Sep, Porwal Auto Components Ltd is priced at 62.40, down 0.87%. Despite recent outperformance against the Sensex, concerns about weak long-term fundamentals and reduced investor interest are contributing to its current price decline.
As of 23-Sep, Porwal Auto Components Ltd is currently priced at 62.40, reflecting a decline of 0.55 or 0.87%. The stock has been experiencing a downward trend, having lost 1.41% over the last two days. It is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, but below its 5-day moving average. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 85.97% compared to the 5-day average. While the company reported positive results in June with a higher profit after tax of Rs 4.14 crore, its profits have decreased by 56.4% over the past year, contributing to concerns about its long-term fundamental strength.In the broader market context, the stock's performance over the past week shows a decline of 3.55%, while the benchmark Sensex has only decreased by 0.34%. Over the past month, however, Porwal Auto has outperformed the Sensex with a gain of 3.57% compared to the benchmark's 0.98%. Despite this recent outperformance, the stock's weak long-term fundamentals, indicated by a low return on capital employed and a poor EBIT to interest ratio, raise concerns about its sustainability. The stock is currently trading at a discount compared to its peers, but the overall negative sentiment from falling profits and reduced investor interest is likely influencing the current price decline.
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