Why is Shyam Telecom falling/rising?
As of 13-Aug, Shyam Telecom Ltd's stock price is at 14.10, down 2.42%, and has underperformed its sector significantly. The company faces operational challenges with a negative book value, declining sales, and a substantial drop in profits, making the stock perceived as risky.
As of 13-Aug, Shyam Telecom Ltd is experiencing a decline in its stock price, currently at 14.10, which reflects a decrease of 0.35 or 2.42%. The stock has underperformed its sector by 3.13% today, and its moving averages indicate a concerning trend, as it is higher than the 100-day moving average but lower than the 5-day, 20-day, 50-day, and 200-day moving averages. Additionally, there has been a notable drop in investor participation, with delivery volume falling by 3.85% against the 5-day average. Over the past year, the stock has generated a return of -14.75%, significantly underperforming the benchmark, which has seen a return of -0.64%. The company's negative book value and weak long-term fundamentals, highlighted by a -39.66% annual growth rate in net sales and a debt-to-equity ratio of 0, further contribute to the stock's downward trajectory.In the broader market context, while the Sensex has shown a slight decline of 0.01% over the past week, Shyam Telecom's performance has been notably worse, with a 1-week return of -2.76%. This stark contrast illustrates the stock's struggles relative to the market. The company's negative results, including a PAT of Rs -3.95 crore and a -763.4% fall compared to the previous quarter's average, alongside a low return on capital employed (ROCE) of 6.17%, indicate significant operational challenges. As a result, the stock is perceived as risky, particularly given its negative EBITDA and the substantial drop in profits over the past year, which have fallen by 78.3%.
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