Why is Shanti Overseas falling/rising?
As of 08-Oct, Shanti Overseas (India) Ltd's stock price is declining at 10.72, down 3.34%. Despite some short-term gains, the stock has significantly underperformed over the long term, with a year-to-date decline of -33.17% and weak fundamentals contributing to negative market sentiment.
As of 08-Oct, Shanti Overseas (India) Ltd is experiencing a decline in its stock price, currently at 10.72, reflecting a decrease of 0.37 or 3.34%. The stock has shown mixed performance recently, with a 1-week return of +1.13% and a 1-month return of +8.72%, indicating some short-term strength. However, it has significantly underperformed over the longer term, with a year-to-date decline of -33.17% and a staggering -40.35% over the past year. Today's price summary indicates that the stock underperformed its sector by 7.38% and is trading above its 5-day and 20-day moving averages but below its longer-term moving averages. While there has been a notable increase in investor participation, with delivery volume rising by 112.19% against the 5-day average, the company's weak long-term fundamentals, including a -212.42% CAGR growth in operating profits over the last five years and a negative EBITDA, contribute to the stock's downward pressure.In the broader market context, Shanti Overseas has consistently underperformed against the benchmark, with returns lagging behind the BSE500 in each of the last three annual periods. While the stock has shown some short-term resilience, the overall sentiment remains negative due to weak profitability metrics, including a low return on equity of 2.22% and a poor EBIT to interest ratio of -5.17. Additionally, the reduction in promoter stake by 2.75% over the previous quarter raises concerns about future confidence in the company. This combination of weak fundamentals and negative market sentiment is likely contributing to the stock's current decline.
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