Why is Shanti Overseas falling/rising?
As of 24-Oct, Shanti Overseas (India) Ltd's stock price is declining at 10.31, down 1.72%, with a year-to-date return of -35.72%. Despite a recent positive month, long-term fundamentals are weak, raising concerns about profitability and investor confidence.
As of 24-Oct, Shanti Overseas (India) Ltd is experiencing a decline in its stock price, currently at 10.31, which reflects a decrease of 0.18 or 1.72%. The stock has shown mixed performance recently, with a 1-week return of -2.64% while outperforming its sector by 2.46% today. Although the stock's performance over the past month is positive at +9.45%, it has significantly underperformed over the longer term, with a year-to-date return of -35.72%. Key financial indicators reveal a weak long-term fundamental strength, highlighted by a -212.42% CAGR growth in operating profits over the last five years and a negative EBITDA, which raises concerns about the company's profitability and ability to service its debt. Additionally, a reduction in promoter confidence, as evidenced by a 2.75% decrease in their stake, further contributes to the stock's downward pressure.In the broader market context, the stock's recent performance contrasts sharply with the benchmark, as the Sensex has gained 0.33% over the past week. This indicates that while the stock has seen some short-term gains, it remains vulnerable compared to the overall market. The consistent underperformance against the benchmark over the last three years, coupled with a significant drop in profits by -46.3% over the past year, suggests that investor sentiment may be cautious. The liquidity of the stock appears adequate for trading, but the overall negative trends in profitability and promoter confidence are likely influencing the stock's current decline.
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