Why is Rossell India falling/rising?
As of 22-Sep, Rossell India Ltd's stock price is at 65.42, down 0.8%, with a significant 60.66% decline over the past year. Despite attractive valuation metrics, the company faces challenges such as declining operating profits and high debt, leading to a negative long-term outlook.
As of 22-Sep, Rossell India Ltd's stock price is currently at 65.42, reflecting a decrease of 0.53, or 0.8%. The stock has been underperforming, having lost 1.03% over the last two days and showing a performance today that is 1.13% lower than its sector. In terms of returns, the stock has generated a significant decline of 60.66% over the past year, alongside a 1.64% drop over the last month. Despite a very attractive valuation indicated by a ROCE of 5.4 and a PEG ratio of 0.1, the company has faced challenges such as a -14.73% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 3.54 times, which negatively impacts its ability to service debt.In the broader market context, the stock's short-term performance of +2.22% over the past week contrasts with the Sensex's modest gain of 0.46%. However, the long-term outlook remains bleak, with the stock underperforming the BSE500 across multiple time frames, including the last three years and one year. The overall market sentiment appears to be cautious, as indicated by falling investor participation, with delivery volume dropping significantly. This combination of poor recent performance, weak long-term fundamentals, and declining investor interest contributes to the stock's downward trajectory.
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