Why is Schneider Elect. falling/rising?
As of 18-Nov, Schneider Electric Infrastructure Ltd's stock price is Rs 767.00, down 2.95%, and has declined 6.69% over the past five days. Despite strong management efficiency, high debt levels and recent flat results are raising investor concerns, contributing to its underperformance compared to the benchmark Sensex.
As of 18-Nov, Schneider Electric Infrastructure Ltd is experiencing a decline in its stock price, currently at Rs 767.00, reflecting a decrease of Rs 23.3 or 2.95%. The stock has underperformed its sector by 2.6% today and has been on a downward trend for the last five days, accumulating a total decline of 6.69% during this period. The stock touched an intraday low of Rs 763.25, and trading volume has decreased significantly, with delivery volume falling by 47.62% against the five-day average. Despite a high management efficiency indicated by a return on capital employed (ROCE) of 27.65% and consistent returns over the past three years, the company faces challenges due to its high debt-to-equity ratio of 4.10 times and flat results reported in September, which may be contributing to investor concerns.In the broader market context, Schneider Electric's short-term performance has lagged behind the benchmark Sensex, which has gained 0.96% over the past week while the stock has dropped 6.69%. Although the stock has shown positive long-term growth with a 9.07% return over the past year, it has not kept pace with the Sensex's 8.36% increase year-to-date. The stock's valuation appears expensive with a PEG ratio of 3, which, combined with high debt levels, may deter investors, leading to the recent price decline.
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