Why is Shanti Overseas falling/rising?
As of 25-Jul, Shanti Overseas (India) Ltd's stock price is declining at 13.16, down 2.01%, with significant underperformance over various periods and concerns about long-term fundamentals, including negative EBITDA and poor growth in operating profits. Despite some positive indicators, the company's financial health and reduced promoter confidence contribute to a bearish trend.
As of 25-Jul, Shanti Overseas (India) Ltd is experiencing a decline in its stock price, currently at 13.16, reflecting a decrease of 0.27 or 2.01%. The stock has shown a significant underperformance over various periods, with a 1-week return of -9.74% and a 1-month return of -21.95%. Although the stock outperformed its sector by 4.9% today, it remains lower than the 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Positive factors include higher net sales and strong quarterly earnings, but these are overshadowed by weak long-term fundamentals, including a staggering -199.45% CAGR growth in operating profits over the last five years and a negative EBITDA, which raises concerns about the company's financial health.In the broader market context, the Sensex has only declined by 0.53% over the past week, suggesting that Shanti Overseas's short-term performance is significantly worse than the benchmark. The company's weak ability to service its debt, as indicated by a poor EBIT to Interest ratio, and a decrease in promoter confidence, with a 2.92% reduction in their stake, further contribute to the negative sentiment surrounding the stock. Overall, while there are some positive indicators in recent performance, the overarching issues of declining profitability and reduced confidence from promoters are leading to a downward trend in the stock price.
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