Why is S.M. Gold falling/rising?
As of 22-Sep, S.M. Gold Ltd is priced at 15.26, up 1.33% today, but has declined 2.49% over the past month and 52.19% over the last year, indicating a bearish trend. Despite an attractive valuation, weak long-term fundamentals and decreasing investor participation raise concerns about its performance.
As of 22-Sep, S.M. Gold Ltd is currently priced at 15.26, reflecting an increase of 0.2 or 1.33%. Despite this positive movement today, the stock has shown a decline of 2.49% over the past month and a significant drop of 52.19% over the last year. The stock is trading below all its moving averages, indicating a bearish trend. Additionally, there has been a decrease in investor participation, with delivery volume falling by 10.43% compared to the 5-day average. While the company has a very attractive valuation with a ROCE of 4.9 and is trading at a discount to its peers, it has also seen a decrease in promoter holding to 33.91%, which may raise concerns among investors.In the broader market context, S.M. Gold's short-term performance of +0.39% over the past week slightly underperforms the Sensex, which gained +0.46% in the same period. The stock's long-term fundamentals are weak, as indicated by a high Debt to EBITDA ratio of 10.74 times and a declining profit trend, with profits falling by 36.3%. This underperformance is further highlighted by the stock's returns over the last three years, where it has lagged behind the BSE500 index. Overall, while there is a minor uptick in the stock price today, the underlying factors suggest ongoing challenges that may continue to pressure its performance.
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