Why is Sri Nacha. Cott. falling/rising?
As of 14-Jul, Sri Nachammai Cotton Mills Ltd's stock price is 35.19, having increased by 1.12% recently. Despite short-term gains, the company faces significant long-term risks due to declining sales, high debt, and low profitability.
As of 14-Jul, Sri Nachammai Cotton Mills Ltd's stock price is currently at 35.19, reflecting an increase of 0.39 or 1.12%. The stock has been gaining for the last three days, with a total return of 6.03% during this period, and it has outperformed its sector by 1.64%. However, despite this recent uptick, the company has shown poor long-term growth, with net sales declining at an annual rate of -13.60% and operating profit plummeting by -184.82% over the last five years. Additionally, the stock is characterized by high debt levels, indicated by a significant debt-to-equity ratio, and low profitability, as evidenced by a return on equity of only 4.78%. In the broader market context, the stock has outperformed the Sensex in the short term, gaining 5.80% over the past week while the benchmark has declined by 1.42%. However, year-to-date, the stock has underperformed significantly, with a decline of 16.81% compared to the Sensex's increase of 5.27%. The falling investor participation, as indicated by a 15.04% drop in delivery volume against the five-day average, may also contribute to the stock's volatility. Overall, while there are short-term gains, the long-term fundamentals and high debt levels present significant risks that could impact future performance.
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