Why is Shanti Overseas falling/rising?
As of 03-Jul, Shanti Overseas (India) Ltd's stock price is Rs. 14.90, down -2.04%, with a recent 52-week high of Rs. 23.87. Despite some short-term positive indicators, the company faces serious long-term challenges, including negative EBITDA and declining operating profits, leading to significant risks in its outlook.
As of 03-Jul, Shanti Overseas (India) Ltd is experiencing a decline in its stock price, currently at Rs. 14.90, which reflects a decrease of -0.31 or -2.04%. The stock has recently hit a new 52-week high of Rs. 23.87, indicating some positive momentum; however, it has underperformed significantly over the past week with a return of -9.81%. In contrast, the stock has outperformed its sector today by 5.89% and is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite positive financial results in the last six months, including higher net sales and PBDIT, the company faces serious challenges, such as a -199.45% CAGR growth in operating profits over the last five years and a negative EBITDA, which contribute to its weak long-term fundamental strength.In the broader market context, the stock's performance over the past week is notably worse than the benchmark Sensex, which has only declined by -0.56%. Year-to-date, Shanti Overseas has returned -7.11%, while the Sensex has gained +7.45%. The recent decrease in promoter stake by -2.92% raises concerns about confidence in the company's future, further complicating its outlook. Overall, while there are some positive indicators in the short term, the long-term fundamentals and market performance suggest significant risks that are likely contributing to the stock's current downward movement.
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