Why is Sh. Steel Wire falling/rising?
As of 18-Sep, Shree Steel Wire Ropes Ltd is priced at Rs 27.30, having gained slightly but still trading below key moving averages and significantly down year-to-date. The company faces operating losses and low profitability, contributing to a perception of risk and underperformance compared to market benchmarks.
As of 18-Sep, Shree Steel Wire Ropes Ltd is currently priced at Rs 27.30, reflecting a slight increase of 0.05 (0.18%). The stock has been gaining for the last two days, with a total return of 1.19% during this period. However, it is still trading lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The stock is 4.73% away from its 52-week low of Rs 26.01 and has shown a significant decline of 30.71% year-to-date, indicating weak long-term fundamental strength. The company is facing operating losses, a poor EBIT to interest ratio of 0.35, and a low return on equity of 2.99%, which signifies low profitability. These factors contribute to a perception of risk, as the stock has generated a return of -28.46% over the past year while profits have fallen by 27%.In the broader market context, the stock's performance has been notably underwhelming compared to the benchmark, with a 1-week return of -4.04% against the Sensex's gain of 1.80%. This underperformance is consistent over longer periods, as the stock has lagged behind the BSE500 in the last three years, one year, and three months. Despite a recent increase in investor participation, with delivery volume rising by 79.57% against the 5-day average, the overall sentiment remains cautious due to the company's weak financial metrics and below-par performance in both the near and long term.
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