Why is Rajas. Tube Mfg falling/rising?
As of 04-Jul, Rajasthan Tube Manufacturing Co Ltd's stock price is declining, currently at 53.66, down 1.99%. Despite a strong long-term performance, recent fundamentals and market sentiment indicate ongoing challenges, including a significant drop in net sales and high debt levels.
As of 04-Jul, Rajasthan Tube Manufacturing Co Ltd is experiencing a decline in its stock price, currently at 53.66, down by 1.09 or 1.99%. The stock has underperformed its sector today by 1.35% and has been on a consecutive fall for the last three days, resulting in a total decline of 5.84% during this period. Despite a remarkable year-to-date return of 511.86% and a staggering 1761.90% increase over the past year, the stock's recent performance is marred by weak fundamentals, including a -4.55% CAGR growth in operating profits over the last five years and a significant drop in net sales by 58.26% in the latest quarter. Additionally, a high Debt to EBITDA ratio of 5.08 times raises concerns about the company's ability to service its debt, contributing to the stock's downward pressure.In the broader market context, while Rajasthan Tube Manufacturing has shown impressive long-term performance, its recent short-term returns have lagged behind the benchmark, with a 3.21% decline over the past week compared to a 0.74% drop in the Sensex. The stock's liquidity appears to be sufficient for trading, but a significant decrease in delivery volume by 96.2% against the five-day average indicates falling investor participation, which may further exacerbate the stock's decline. Overall, despite its historical performance, the combination of weak financial fundamentals and recent negative market sentiment has led to the stock's current downward trajectory.
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