Why is Rajas. Tube Mfg falling/rising?
As of 03-Jul, Rajasthan Tube Manufacturing Co Ltd's stock price is at 54.75, down 1.99% after two consecutive days of decline. Despite a strong long-term performance, recent drops in delivery volume and weak fundamentals raise concerns about profitability and debt servicing.
As of 03-Jul, Rajasthan Tube Manufacturing Co Ltd's stock price is currently at 54.75, reflecting a decrease of 1.11, or 1.99%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total decline of 3.93%. Despite a strong long-term performance with a remarkable increase of 1821.05% over the past year, the stock's recent movement is influenced by a significant drop in delivery volume, which has decreased by 35.14% against the five-day average. Additionally, the company's weak long-term fundamental strength, indicated by a -4.55% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 5.08 times, raises concerns about its profitability and ability to service debt.In the broader market context, while the stock has shown a positive return of 0.72% over the past week, the benchmark Sensex has declined by 0.62% during the same period. This suggests that the stock has outperformed the market in the short term, but the recent price drop indicates a potential shift in investor sentiment. The stock's liquidity remains adequate for trading, but the combination of falling investor participation and flat quarterly results, including a significant drop in net sales, may be contributing to the current downward pressure on the stock price.
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