Why is Rail Vikas falling/rising?
As of 22-Sep, Rail Vikas Nigam Ltd's stock price is 358.95, down 1.22%, following a trend reversal after 11 days of gains. Despite a recent weekly return of +3.35%, the stock has significantly underperformed year-to-date with a decline of 15.07% and an annual return of -34.05%, indicating poor long-term growth prospects and troubling fundamentals.
As of 22-Sep, Rail Vikas Nigam Ltd's stock price is currently at 358.95, reflecting a decrease of 4.45, or 1.22%. The stock has recently underperformed its sector by 0.72% and has experienced a trend reversal after 11 consecutive days of gains. Additionally, the stock's delivery volume has fallen by 21.07% compared to the 5-day average, indicating a decline in investor participation. Over the past week, the stock has shown a return of +3.35%, significantly outperforming the Sensex, which returned +0.46%. However, the stock's year-to-date performance is concerning, with a decline of 15.07%, while its annual return stands at -34.05%, highlighting poor long-term growth prospects.In the broader market context, despite the overall market (BSE500) generating negative returns of -3.80% over the past year, Rail Vikas has significantly underperformed with a return of -34.05%. The company's fundamentals indicate a troubling trend, with net sales growth at only 6.24% annually and a substantial drop in profit after tax of 58% compared to the previous quarter. Furthermore, the company's return on capital employed (ROCE) of 10.2 suggests an expensive valuation, and the low stake held by domestic mutual funds (only 0.66%) may reflect a lack of confidence in the stock's current price. These factors contribute to the stock's recent decline, overshadowing its short-term gains.
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