Why is Saint-Gob. Sekur falling/rising?
As of 18-Sep, Saint-Gobain Sekurit India Ltd's stock price is at 116.45, down 0.13%, and has underperformed its sector. Despite strong long-term profit growth, concerns about its high valuation and low mutual fund participation indicate investor caution.
As of 18-Sep, Saint-Gobain Sekurit India Ltd is experiencing a slight decline in its stock price, currently at 116.45, reflecting a decrease of 0.15 or 0.13%. The stock has underperformed its sector today by 1.77%, and while it is trading higher than its 50-day, 100-day, and 200-day moving averages, it is lower than its 5-day and 20-day moving averages. Over the past week, the stock has decreased by 0.38%, and year-to-date, it has fallen by 10.42%. Despite a healthy long-term growth rate in operating profit of 57.50% and positive quarterly results, the stock's valuation appears expensive with a Price to Book Value of 4.9, leading to concerns among investors. Additionally, the low participation from domestic mutual funds, holding only 0.01%, may indicate a lack of confidence in the stock's current price.In the broader market context, the Sensex has shown a positive return of 1.80% over the past week, contrasting with the stock's decline. Although the overall market (BSE500) has generated negative returns of -1.96% in the last year, Saint-Gobain Sekurit has significantly underperformed with a return of -14.09%. This underperformance, coupled with a rising PEG ratio of 1.2 despite profit growth, suggests that investors are cautious about the stock's future prospects compared to the benchmark. The falling delivery volume, which has decreased by 9.72% against the 5-day average, further indicates waning investor interest, contributing to the stock's recent price movement.
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