Why is Shalibhadra Fin. falling/rising?
As of 27-Jun, Shalibhadra Finance Ltd's stock price is Rs 130.00, down 1.44%, and has underperformed its sector. Despite positive quarterly results, weak long-term fundamentals and poor growth metrics contribute to its decline and lack of investor confidence.
As of 27-Jun, Shalibhadra Finance Ltd is experiencing a decline in its stock price, currently at Rs 130.00, which reflects a decrease of Rs 1.9 or 1.44%. The stock has underperformed its sector by 1.53% today and has reversed its trend after three consecutive days of gains, touching an intraday low of Rs 128.3. Over the past week, the stock has shown a positive return of 8.33%, but it has underperformed in the longer term, with a 1-month return of -3.46% and a year-to-date return of -26.17%. Despite the company declaring positive results for the last 14 consecutive quarters, with significant growth in profit before tax and profit after tax, its long-term fundamental strength is weak, as indicated by an average return on equity of 10.40% and a high price-to-book value ratio of 2.6.In the broader market context, while the Sensex has generated a return of 2.00% over the past week, Shalibhadra Finance Ltd's performance has lagged behind, indicating a lack of investor confidence despite increasing participation from institutional investors, who have raised their stake by 1.81%. The stock's poor long-term growth metrics, including a net sales growth rate of only 8.76%, contribute to its underperformance compared to the market, which has yielded a return of 4.10% over the past year. This combination of weak fundamentals and relative underperformance against the benchmark suggests that the stock's current decline may be driven by investor sentiment reflecting these concerns.
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