Why is Soni Medicare falling/rising?
As of 11-Jun, Soni Medicare Ltd's stock price is declining at 50.80, down 1.99%, and has fallen 34.14% over the last 21 days. Despite a strong long-term return of 70.47% over the past year, high debt levels and poor short-term performance raise concerns about its profitability and investor confidence.
As of 11-Jun, Soni Medicare Ltd is experiencing a decline in its stock price, currently at 50.80, which reflects a decrease of 1.03 or 1.99%. The stock has been underperforming significantly, having fallen consecutively for the last 21 days, resulting in a total drop of 34.14% during this period. Additionally, it has underperformed its sector by 1.86% today. Despite a strong long-term performance with a 70.47% return over the past year, the stock's recent performance has been negatively impacted by high debt levels, indicated by a Debt-Equity Ratio of 6.6 times and a low Return on Equity of 1.73%, suggesting weak profitability. Furthermore, the stock is trading at a discount compared to its peers, but the high Debt to EBITDA ratio of 4.34 times raises concerns about its ability to service debt.In the broader market context, Soni Medicare's short-term performance has been notably poor compared to the benchmark, with a 1-week return of -9.56% against a Sensex increase of 1.87%. While the stock has shown strong long-term returns, the recent decline highlights a significant divergence from the market's upward trend. The falling investor participation, as evidenced by a 24.16% drop in delivery volume, further indicates a lack of confidence among investors. Overall, the combination of high debt, declining returns in the short term, and reduced trading activity contributes to the stock's current downward trajectory.
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