Why is Smiths & Founder falling/rising?
As of 24-Jun, Smiths & Founders (India) Ltd's stock price is declining at 5.83, down 1.35%, and has underperformed its sector and the benchmark Sensex significantly. Despite positive quarterly results, the company's long-term fundamentals appear weak, contributing to a bearish sentiment and a year-to-date decline of 23.29%.
As of 24-Jun, Smiths & Founders (India) Ltd is experiencing a decline in its stock price, currently at 5.83, reflecting a decrease of 0.08 or 1.35%. The stock has underperformed its sector by 1.65% today and has been on a downward trend, falling for the last two days with a total decline of 2.35%. Additionally, it is trading below all its moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), indicating a bearish sentiment. Despite the company declaring positive results for the last five consecutive quarters, including a high Return on Capital Employed (ROCE) of 7.59% and a strong inventory turnover ratio, the overall long-term fundamental strength appears weak. The average ROCE of 8.35% and a poor EBIT to Interest ratio of 1.00 suggest challenges in servicing debt, contributing to the stock's negative performance.In the broader market context, the stock has significantly underperformed compared to the benchmark Sensex, which has gained 0.58% over the past week while Smiths & Founders has dropped 3.95%. This trend continues over the past month, where the stock has decreased by 7.17% against a modest gain of 0.41% for the Sensex. The stock's long-term performance also shows a decline of 23.29% year-to-date, contrasting sharply with the Sensex's increase of 5.01%. The weak long-term growth, indicated by an annual net sales growth rate of only 10.33% over the last five years, further exacerbates the stock's challenges in attracting investor confidence, leading to a decline in trading volume and overall liquidity.
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