Why is Shanti Overseas falling/rising?
As of 11-Jul, Shanti Overseas (India) Ltd's stock price is declining at 11.43, down 3.79%, and has significantly underperformed its sector and the market over the past year. The company faces severe long-term challenges, including negative growth in operating profits and reduced promoter confidence, indicating a risky investment environment.
As of 11-Jul, Shanti Overseas (India) Ltd is experiencing a decline in its stock price, currently at 11.43, reflecting a decrease of 0.45 or 3.79%. The stock has underperformed its sector by 3.25% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a significant drop of 21.71%, and its performance over the last month shows a staggering decline of 44.76%. Despite some positive results in net sales and quarterly profits, the company faces severe long-term challenges, including a -199.45% CAGR growth in operating profits over the last five years and a negative EBITDA, indicating a risky investment environment. Additionally, a reduction in promoter confidence, with a 2.92% decrease in their stake, further signals concerns about the company's future.In the broader market context, Shanti Overseas has consistently underperformed against the benchmark, with a return of -27.38% over the past year compared to the Sensex's gain of 3.43%. This trend of underperformance has persisted over the last three years, where the stock has generated negative returns while the benchmark has seen positive growth. The company's weak financial fundamentals, including a poor EBIT to interest ratio and low return on equity, contribute to its inability to attract investor confidence, further exacerbating its stock price decline in a market that has shown resilience.
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