Why is Setco Automotive falling/rising?
As of 14-Aug, Setco Automotive Ltd's stock price is at 15.58, down 5.0%, and has underperformed its sector. Despite a 22.20% return over the past year, challenges like high debt and negative book value contribute to its current decline.
As of 14-Aug, Setco Automotive Ltd's stock price is currently at 15.58, reflecting a decline of 0.82, or 5.0%. The stock has recently underperformed its sector by 5.34% and has experienced a trend reversal, falling after four consecutive days of gains. In the past week, the stock has shown a positive return of 8.50%, but over the last month, it has decreased by 9.15%. Despite generating a notable return of 22.20% over the past year, the company faces significant challenges, including a negative book value, high debt levels, and poor long-term growth indicators, which have contributed to its current price decline.In the broader market context, while the Sensex has seen a slight decline of 0.03% over the past week, Setco Automotive's performance has been notably weaker, indicating a divergence from the market trend. The company’s high debt-to-equity ratio and negative net worth raise concerns among investors, particularly as 94.59% of promoter shares are pledged, which can exert additional downward pressure on the stock price in a falling market. Overall, the combination of weak fundamentals and high risk factors has led to the stock's current downward movement despite its previous strong performance.
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