Why is Shanti Overseas falling/rising?
As of 28-Jul, Shanti Overseas (India) Ltd's stock price is declining at 12.89, down 2.05%, with significant underperformance over various periods and a bearish trend indicated by moving averages. Despite some positive financial results, weak long-term fundamentals and poor debt servicing raise concerns about the company's profitability and financial health.
As of 28-Jul, Shanti Overseas (India) Ltd is experiencing a decline in its stock price, currently at 12.89, which represents a decrease of 0.27 or 2.05%. The stock has shown a significant underperformance over various periods, with a 1-week return of -9.73% and a 1-month return of -20.33%. 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. The company's recent financial results showed some positive aspects, such as higher net sales and the highest quarterly PBDIT and PBT figures, 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 its profitability and financial health.In the broader market context, the Sensex has only declined by 1.63% over the past week, indicating that Shanti Overseas's short-term performance is significantly worse than the benchmark. The company's weak ability to service its debt, as evidenced by a poor EBIT to Interest ratio of -4.76, along with a reduction in promoter confidence—where promoters have decreased their stake by 2.92%—further contributes to the negative sentiment surrounding the stock. Overall, while there are some positive indicators in the recent financial results, the overwhelming negative factors and poor performance relative to the market suggest that the stock is facing considerable challenges.
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