Why is Rathi Bars falling/rising?
As of 09-Sep, Rathi Bars Ltd is priced at 30.24, having gained 10.53% over the last four days, but it has a year-to-date decline of 32.86%. Despite recent short-term gains, the stock's long-term performance is weak due to declining profits and poor fundamentals.
As of 09-Sep, Rathi Bars Ltd is currently priced at 30.24, reflecting a slight increase of 0.04 or 0.13%. The stock has been on a positive trajectory, gaining for the last four consecutive days with a total return of 10.53% during this period. However, despite this recent uptick, the stock has underperformed significantly over the longer term, with a year-to-date decline of 32.86% and a one-year drop of 33.35%. The stock's performance today is in line with its sector, but there has been a notable decrease in investor participation, as evidenced by a 65.8% drop in delivery volume compared to the five-day average. Additionally, while the stock is trading at a discount compared to its peers, it has experienced a decline in profits of 15.6% over the past year, contributing to its weak long-term fundamentals.In the broader market context, Rathi Bars Ltd's short-term return of 3.92% over the past week outpaces the Sensex, which has only increased by 1.18% during the same period. However, the stock's long-term performance remains concerning, as it has underperformed the BSE500 index over the last three years, one year, and three months. The company's weak fundamentals, including a low Return on Capital Employed (ROCE) of 4.8 and a high Debt to EBITDA ratio of 4.90 times, suggest challenges in sustaining growth and servicing debt. This combination of short-term gains amidst long-term struggles indicates a complex situation for investors considering Rathi Bars Ltd.
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