Why is Shetron falling/rising?
As of 11-Sep, Shetron Ltd's stock price is at 135.00, up 0.71%, but it is underperforming its sector and trading below key moving averages. Despite a modest annual return, significant profit declines and concerns about debt servicing raise questions about its financial stability.
As of 11-Sep, Shetron Ltd's stock price is currently at 135.00, reflecting an increase of 0.95 or 0.71%. Today's performance indicates that the stock has outperformed its sector by 0.53%. However, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has declined by 2.17%, and over the past month, it has fallen by 5.66%. Despite generating a modest return of 4.09% over the last year, the company's profits have significantly decreased by 47.5%. The stock's attractive valuation, indicated by a 12.6% ROCE and a 1.7 enterprise value to capital employed, suggests it is trading at a discount compared to its peers. However, the company's weak ability to service its debt, as evidenced by a poor EBIT to interest ratio of 1.54, raises concerns about its financial stability.In the broader market context, the Sensex has shown a positive return of 1.03% over the past week, contrasting with Shetron's decline. This disparity highlights the stock's underperformance relative to the benchmark. While the stock has consistently outperformed the BSE500 over the last three years, its recent struggles with profitability and flat growth in net sales and operating profit over the past five years indicate potential long-term challenges. The liquidity of the stock appears adequate, with a delivery volume increase of 67.4% against the 5-day average, but the overall negative sentiment surrounding its financial health may be contributing to the stock's recent price movements.
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