Why is Prec. Electronic falling/rising?
As of 20-Jun, Precision Electronics Ltd's stock price is Rs 158.00, down 3.66% after a four-day decline totaling 10.58%. Despite a strong monthly increase of 31.89%, the stock faces long-term challenges due to weak fundamentals and declining profits.
As of 20-Jun, Precision Electronics Ltd is experiencing a decline in its stock price, currently at Rs 158.00, reflecting a decrease of Rs 6.00 or 3.66%. The stock has been underperforming, having fallen consecutively for the last four days, resulting in a total drop of 10.58% during this period. Despite touching an intraday high of Rs 168.9 earlier in the day, the weighted average price indicates that more volume was traded closer to the low price. Additionally, while the stock has shown strong performance over the past month with a 31.89% increase, its recent negative movement is compounded by weak long-term fundamentals, including a low Return on Capital Employed (ROCE) of 2.76% and a high Debt to EBITDA ratio of 8.94 times.In the broader market context, the stock's recent performance contrasts sharply with the Sensex, which has gained 1.59% over the past week. This underperformance is notable given that Precision Electronics has generated a return of 11.54% over the past year, yet its profits have significantly declined by 138.1%. The company has reported its highest net sales and operating profit margins recently, but the long-term growth outlook remains weak, with net sales growing at an annual rate of only 4.81% over the last five years. This combination of short-term volatility and long-term fundamental weaknesses has contributed to the stock's current downward trajectory.
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