Why is Salasar Techno falling/rising?
As of 10-Jul, Salasar Techno Engineering Ltd's stock price is at 8.20, up 6.08% recently, but it has declined 55.46% over the past year. While it shows short-term gains and an attractive valuation, concerns about profitability and a reduced promoter stake may affect investor confidence.
As of 10-Jul, Salasar Techno Engineering Ltd's stock price is currently at 8.20, reflecting an increase of 0.47 or 6.08%. The stock has shown a positive trend recently, gaining for the last two days and achieving a total return of 11.26% in this period. It is currently outperforming its sector by 6.08%. However, despite this recent uptick, the stock has experienced significant declines over the past year, with a return of -55.46%, and its profits have fallen by 36.9%. The company's valuation appears attractive with a Return on Capital Employed (ROCE) of 9.4 and a favorable enterprise value to capital employed ratio, but it also faces challenges such as a high Debt to EBITDA ratio of 2.87, indicating low ability to service debt and concerns regarding profitability.In the broader market context, the stock's short-term performance of +11.11% over the past week contrasts with the Sensex, which has seen a negligible change of -0.06%. This indicates that Salasar Techno is currently gaining traction relative to the broader market. However, the stock's long-term performance remains concerning, as it has underperformed the BSE500 over various time frames, including the last three years and one year. Additionally, the reduction in promoter stake by 2.45% may signal a lack of confidence in the company's future prospects, which could weigh on investor sentiment despite the recent positive price movement.
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