Why is Schneider Elect. falling/rising?
As of 08-Jul, Schneider Electric Infrastructure Ltd's stock price is declining at 811.00, down 0.85%, with a total drop of 3.45% over the past week. Despite strong long-term growth potential, high debt and poor net sales growth are impacting investor confidence, leading to significant underperformance compared to the broader market.
As of 08-Jul, Schneider Electric Infrastructure Ltd is experiencing a decline in its stock price, currently at 811.00, which reflects a decrease of 6.95 or 0.85%. The stock has underperformed its sector by 1.44% today and has been on a consecutive downward trend for the last two days, resulting in a total decline of 1.1% in that period. Over the past week, the stock has fallen by 3.45%, while it has shown a modest gain of 2.26% over the past month. Despite a strong long-term growth trajectory with an annual operating profit growth rate of 209.92%, the company is facing challenges due to high debt levels and a poor long-term growth rate in net sales of 13.78% over the last five years. Additionally, the stock's high valuation metrics, including a ROCE of 20.90% and a PEG ratio of 1.7, suggest that it may be perceived as expensive relative to its earnings growth.In the broader market context, the Sensex has remained relatively stable, showing a slight increase of 0.02% over the past week and a gain of 1.85% over the past month. While Schneider Electric has outperformed the benchmark on a year-to-date basis with a return of 5.92% compared to the Sensex's 7.13%, its one-year performance has been significantly weaker, with a decline of 7.62% against the Sensex's gain of 4.69%. This underperformance, coupled with falling investor participation—evidenced by a 65.52% drop in delivery volume—indicates a lack of confidence among investors, contributing to the stock's recent price decline.
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