Why is Rajas. Tube Mfg falling/rising?
As of 22-Jul, Rajasthan Tube Manufacturing Co Ltd's stock price is Rs 44.40, down 3.56%, with a significant decline of 15.07% over the past month. Despite strong long-term returns, recent challenges include decreased promoter holding, a drop in net sales, and high debt levels, leading to negative investor sentiment.
As of 22-Jul, Rajasthan Tube Manufacturing Co Ltd is experiencing a decline in its stock price, currently at Rs 44.40, which reflects a decrease of Rs 1.64 or 3.56%. The stock opened with a gain of 3.82% today but subsequently fell to an intraday low of Rs 43.72, indicating volatility within the trading session. Over the past week, the stock has underperformed, showing a decline of 4.70%, and it has also seen a significant drop of 15.07% over the past month. Despite impressive long-term returns of 1355.74% over the last year, the company faces challenges, including a decrease in promoter holding to 16.5% and a concerning -4.55% CAGR growth in operating profits over the last five years. Additionally, the company has reported a significant drop in net sales, which fell by 58.26%, further contributing to negative sentiment around the stock.In the broader market context, the stock's short-term performance has lagged behind the benchmark, with the Sensex only declining by 0.47% over the same week. This underperformance is compounded by the stock's high Debt to EBITDA ratio of 5.08 times, indicating a low ability to service debt, and a relatively low return on equity of 8.49%, suggesting weak profitability. While the stock has shown strong long-term performance, the recent flat results and declining sales have raised concerns among investors, leading to a sell-off despite rising investor participation reflected in increased delivery volumes.
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