Why is RTS Power Corpn. falling/rising?
As of 17-Sep, RTS Power Corporation Ltd is priced at 148.50, having gained 0.34% recently but declined 53.12% over the past year. Weak fundamentals and a significant profit drop raise investor caution despite short-term outperformance against the Sensex.
As of 17-Sep, RTS Power Corporation Ltd is currently priced at 148.50, reflecting an increase of 0.5 (0.34%). The stock has been gaining for the last two days, with a total return of 1.16% during this period. However, over the past month, the stock has declined by 3.73%, and it has experienced a significant drop of 53.12% over the past year. The stock's return on equity (ROE) is relatively low at 2.4, indicating fair valuation, but it is trading at a premium compared to its peers. Additionally, the company has faced challenges, including an 86.8% decline in profits over the past year, which may contribute to investor caution despite recent gains.In the broader market context, the stock has outperformed the Sensex in the short term, with a 1.71% increase over the past week compared to the benchmark's 1.56%. However, the stock's long-term performance has been poor, with a year-to-date decline of 49.32% against the Sensex's 5.83% gain. The company's weak fundamentals, including a low EBIT to interest ratio and a significant drop in profit before tax, suggest ongoing financial struggles that could overshadow its recent price movements. Despite increased investor participation and liquidity, the overall negative sentiment stemming from its long-term performance may limit further price recovery.
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