Why is Simplex Realty falling/rising?
As of 31-Jul, Simplex Realty Ltd is priced at 179.80, showing a slight increase but trading below moving averages, indicating a bearish trend. Despite a year-on-year return of 8.25%, the company faces operating losses and declining profits, making it a risky investment.
As of 31-Jul, Simplex Realty Ltd is currently priced at 179.80, reflecting a slight increase of 0.1 (0.06%). The stock has shown a trend reversal by gaining after four consecutive days of decline, outperforming its sector by 0.58%. However, it is trading below its moving averages across various timeframes, indicating a bearish trend. Despite a year-on-year return of 8.25%, the company has reported operating losses and a negative return on capital employed (ROCE), which raises concerns about its long-term financial health. The stock's performance has been impacted by a significant drop in profits, which fell by 24.9% over the past year, contributing to its classification as a risky investment.In the broader market context, the stock has underperformed against the benchmark Sensex over the past week and month, with returns of -9.60% and -6.13%, respectively, compared to the Sensex's declines of -1.22% and -3.00%. Despite this, the stock has managed to generate positive returns in the longer term, outperforming the BSE500 index, which has seen negative returns of -3.20% over the last year. The rising investor participation, indicated by a 131.14% increase in delivery volume, suggests some renewed interest, but the overall weak fundamentals and negative EBITDA position the stock as a risky investment in the current market environment.
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