Why is Rane (Madras) falling/rising?
As of 21-Jul, Rane (Madras) Ltd's stock price is 877.40, down 1.33%, reflecting a two-day decline of 2.34% and a monthly drop of 5.12%. Despite a strong long-term growth outlook, recent profit declines and a high Debt to EBITDA ratio are negatively impacting investor sentiment.
As of 21-Jul, Rane (Madras) Ltd is experiencing a decline in its stock price, currently at 877.40, which reflects a decrease of 11.8 points or 1.33%. The stock has underperformed its sector by 1.01% today and has been on a consecutive downward trend for the last two days, resulting in a total decline of 2.34%. Over the past week, the stock has decreased by 0.52%, and in the last month, it has fallen by 5.12%. Despite a strong long-term growth outlook, with an annual operating profit growth rate of 50.01%, the stock's recent performance has been negatively impacted by a significant drop in profits, which fell by 89.2% over the past year, contributing to investor concerns.In the broader market context, the stock's short-term performance contrasts with the benchmark, as it has underperformed the Sensex, which has only seen a slight decline of 0.06% over the same week. While Rane (Madras) has shown strong long-term returns, outperforming the BSE500 over various periods, the current high Debt to EBITDA ratio of 7.59 times raises concerns about its ability to service debt, which may be influencing investor sentiment negatively. The liquidity of the stock remains adequate, with a delivery volume increase of 17.33% against the 5-day average, but the overall market conditions and recent profit declines are likely contributing to the stock's downward movement.
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