Why is Shemaroo Entert. falling/rising?
As of 07-Jul, Shemaroo Entertainment Ltd's stock price is Rs 142.50, down 2.06%, with significant declines over the past week and reduced trading volume. The company faces challenges with weak long-term fundamentals and underperformance compared to the market, indicating risky valuations.
As of 07-Jul, Shemaroo Entertainment Ltd's stock price is currently at Rs 142.50, reflecting a decrease of Rs 3.0 or 2.06%. The stock has been underperforming, having lost 2.43% over the last two days and showing a significant decline of 6.53% over the past week. Today's trading saw the stock reach an intraday high of Rs 149.55 but also dip to a low of Rs 142. The volume of shares traded has notably decreased, with delivery volume falling by 58.34% against the 5-day average, indicating a decline in investor participation. Despite some positive operational metrics, such as the highest inventory turnover ratio and operating profit to interest ratio, the company faces significant challenges, including a weak long-term fundamental strength characterized by a -204.37% CAGR growth in operating profits over the last five years and a high debt to EBITDA ratio of 11.22 times.In the broader market context, Shemaroo Entertainment has underperformed relative to the benchmark, with a 1-year return of -9.21% compared to the Sensex's gain of 4.31%. While the stock has shown some positive performance over the past month with a 26.84% increase, its year-to-date performance remains negative at -9.41%. This underperformance, coupled with a negative EBITDA and low return on equity, suggests that the stock is trading at risky valuations compared to its historical performance. Overall, the combination of declining investor interest, weak long-term fundamentals, and poor relative performance against the market contributes to the stock's current downward trajectory.
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