Why is Shera Energy falling/rising?
As of 29-Aug, Shera Energy Ltd's stock price is at 136.30, down 0.44%, and trading below all key moving averages, indicating a downward trend. Despite positive financial results, concerns about debt servicing and significant underperformance against benchmarks have led to decreased investor confidence.
As of 29-Aug, Shera Energy Ltd's stock price is currently at 136.30, reflecting a decrease of 0.6, or 0.44%. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a downward trend. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 77.61% compared to the 5-day average. Over the past year, the stock has underperformed with a return of -22.80%, despite the company reporting positive financial results, including a 75.74% growth in profit after tax and a 34.93% increase in net sales. However, the company's weak ability to service its debt, evidenced by a poor EBIT to interest ratio of 1.79, raises concerns about its financial stability.In the broader market context, Shera Energy's short-term performance has been notably worse than the benchmark, with a 1-week return of -4.22% compared to the Sensex's -1.78%. This consistent underperformance against the benchmark over the last three years, coupled with the stock's significant decline year-to-date, suggests a lack of investor confidence. While the company has shown high management efficiency and attractive valuations relative to peers, the overall market sentiment remains cautious due to its debt servicing challenges and low profitability per unit of shareholders' funds.
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