Why is SAL Automotive falling/rising?
As of 04-Jul, SAL Automotive Ltd's stock price is at 265.15, down 1.8%, and has underperformed recently, trading below key moving averages. Despite some long-term growth indicators, high debt levels and low profitability raise investor concerns.
As of 04-Jul, SAL Automotive Ltd's stock price is currently at 265.15, reflecting a decline of 4.85 or 1.8%. The stock has been underperforming, having lost 2.16% over the last two days and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. In the past week, the stock has decreased by 1.78%, while it has shown a modest gain of 2.08% over the past month. Despite a year-on-year return of 4.04%, the company faces challenges such as a high Debt to EBITDA ratio of 8.88 times, indicating a low ability to service debt, and a Return on Equity of only 7.37%, which suggests low profitability per unit of shareholders' funds. Additionally, flat results in the most recent quarter have raised concerns among investors.In the broader market context, SAL Automotive's recent performance contrasts with the Sensex, which has only declined by 0.74% over the past week. While the stock's long-term growth indicators, such as a 34.61% annual growth rate in net sales and a 43.51% increase in operating profit, suggest potential, the current negative sentiment is compounded by its recent underperformance against the sector and the benchmark. The rising investor participation, indicated by a 4.19% increase in delivery volume, may not be sufficient to offset the negative factors impacting the stock's price.
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