Why is Shanti Overseas falling/rising?
As of 08-Jul, Shanti Overseas (India) Ltd's stock price is declining at 13.17, down 5.05%, with significant underperformance against its sector and benchmarks. The company shows weak financial health, indicated by negative growth in operating profits and reduced promoter confidence, contributing to its ongoing stock decline.
As of 08-Jul, Shanti Overseas (India) Ltd is experiencing a decline in its stock price, currently at 13.17, reflecting a decrease of 0.7 or 5.05%. The stock has underperformed significantly today, trailing its sector by 3.9%. Additionally, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has dropped by 15.20%, and it has seen a substantial decline of 40.16% over the past month. The company's financial health is concerning, with a weak long-term fundamental strength indicated by a -199.45% CAGR growth in operating profits over the last five years, a poor EBIT to interest ratio of -4.76, and a low average return on equity of 2.22%. Furthermore, the promoters have reduced their stake by 2.92%, which may signal a lack of confidence in the company's future prospects.In the broader market context, Shanti Overseas has consistently underperformed against the benchmark, with a return of -16.33% over the past year compared to the Sensex's gain of 4.94%. This trend of underperformance extends over the last three years, where the stock has generated negative returns while the benchmark has seen significant gains. The stock's risk profile is heightened due to negative EBITDA and a substantial drop in profits by 96.1% over the past year, further contributing to its decline. Overall, the combination of weak financial metrics, reduced promoter confidence, and consistent underperformance against market benchmarks is driving the stock's downward movement.
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