Why is Shetron falling/rising?
As of 16-Jul, Shetron Ltd's stock price is at 153.25, down 4.34% after a trend reversal. Despite strong weekly and monthly returns, the stock faces challenges with declining profits and poor debt servicing, impacting its current performance.
As of 16-Jul, Shetron Ltd's stock price is currently at 153.25, reflecting a decrease of 6.95 points or 4.34%. The stock has underperformed its sector today by 5.3% and has experienced a trend reversal after six consecutive days of gains, touching an intraday low of Rs 151.05. Despite this decline, Shetron has shown strong performance over the past week and month, with returns of 7.92% and 25.61%, respectively. However, the stock's year-to-date performance is down by 9.85%, and while it has generated a return of 17.98% over the past year, its profits have significantly fallen by 52.8%. The company's weak ability to service its debt, indicated by a poor EBIT to Interest ratio of 1.46, along with low profitability per unit of shareholders' funds, may be contributing to the recent price decline.In the broader market context, Shetron's recent performance contrasts with the Sensex, which has seen a slight decline of 1.08% over the past week. The stock's ability to outperform the benchmark in the longer term, with consistent returns over the last three years, suggests that it has been resilient despite current challenges. However, the overall market sentiment may be influenced by the company's weak long-term growth prospects, as evidenced by low net sales growth and operating profit rates. This combination of factors, including a significant drop in profits and concerns over debt servicing, likely contributes to the stock's current downward movement.
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