Why is Riba Textiles falling/rising?
As of 16-Sep, Riba Textiles Ltd's stock price is Rs 81.51, down 2.3%, and has underperformed its sector by 3.75%. Despite a slight annual profit increase, the company's weak long-term fundamentals and declining investor confidence contribute to a negative outlook.
As of 16-Sep, Riba Textiles Ltd is experiencing a decline in its stock price, currently at Rs 81.51, which reflects a decrease of Rs 1.92 or 2.3%. The stock has underperformed its sector by 3.75% today and has been on a consecutive downward trend for the last two days, with a total decline of 2.96% in that period. Additionally, the stock's performance over the past year shows a slight decrease of 2.51%, despite a 1.3% rise in profits. The company's Return on Capital Employed (ROCE) of 10.1 indicates an attractive valuation, but its long-term fundamentals are weak, with a high Debt to EBITDA ratio and poor growth in net sales and operating profit over the last five years contributing to negative sentiment.In the broader market context, the Sensex has increased by 1.58% over the past week, contrasting with Riba Textiles' decline. While the stock has shown a positive return of 1.87% over the past month, it has significantly underperformed the benchmark year-to-date, with a decline of 23.05% compared to the Sensex's gain of 5.43%. The falling investor participation, indicated by a 61.9% drop in delivery volume, further exacerbates the stock's negative outlook, suggesting a lack of confidence among investors in the company's future performance.
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