Why is Ravikumar Distll falling/rising?
As of 05-Sep, Ravikumar Distilleries Ltd is priced at 27.30, showing a short-term gain but underperforming over the past month and year due to financial challenges and negative sector sentiment. The stock's risky profile is highlighted by operating losses and a high debt to EBITDA ratio, indicating potential future instability.
As of 05-Sep, Ravikumar Distilleries Ltd is currently priced at 27.30, reflecting an increase of 0.17 or 0.63%. The stock has shown a positive movement today, having outperformed its sector by 2.88% and marking a trend reversal after two consecutive days of decline. Despite this short-term gain, the stock has underperformed over the past month, with a return of -3.36%, and a significant decline of -15.35% over the past year. The company is facing challenges, including operating losses and a weak long-term fundamental strength, as evidenced by a negative annual growth rate in net sales and a high debt to EBITDA ratio. These factors contribute to the stock's risky profile, despite the recent uptick in investor participation.In the broader market context, the stock's short-term performance of +3.02% over the past week contrasts with the Sensex's modest gain of +1.13%. However, the stock has significantly lagged behind the benchmark over the longer term, with a year-to-date decline of -6.19% compared to the Sensex's +3.29%. This underperformance is compounded by the overall negative sentiment in the breweries and distilleries sector, which has seen a decline of -2.2%. While there is some liquidity in trading, the company's poor financial fundamentals and the majority ownership by non-institutional shareholders suggest ongoing challenges that may affect future price stability.
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