Why is Semac Consul falling/rising?

Jul 04 2025 09:30 PM IST
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As of 04-Jul, Semac Consultants Ltd is currently priced at Rs 480.80, reflecting a recent price increase and strong short-term performance, but it has underperformed over the past year and shows signs of weak long-term fundamentals, raising concerns about its investment viability.
As of 04-Jul, Semac Consultants Ltd is experiencing a price increase, currently at Rs 480.80, reflecting a rise of 1.8 (0.38%). The stock has shown strong performance recently, with a 1-week return of +8.69% and a 1-month return of +32.73%, significantly outperforming the Sensex, which has seen a decline of -0.74% over the same week. However, today's trading has been characterized by erratic patterns, with the stock not trading on one day out of the last 20. Despite this, it has been trading above its moving averages, indicating a positive short-term trend. On the downside, there has been a notable decrease in investor participation, with delivery volume falling by -34.68% against the 5-day average, which may raise concerns about sustained interest in the stock.

In the broader market context, while Semac Consultants Ltd has outperformed the Sensex in the short term, it has underperformed over the past year, with a return of -21.69% compared to the market's +4.23%. The company's financials reveal a weak long-term fundamental strength, highlighted by operating losses and a poor EBIT to Interest ratio of -1.63, indicating challenges in servicing its debt. Despite achieving positive results in March with record cash and net sales, the stock's negative EBITDA and low profitability per unit of shareholder funds suggest that it remains a risky investment. Thus, while the recent price increase may attract some investors, the underlying financial weaknesses could temper enthusiasm.
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