Why is SRU Steels falling/rising?
As of 07-Jul, SRU Steels Ltd's stock price is at 5.99, up 1.87%, with significant short-term gains but a troubling long-term outlook due to negative growth in operating profits and low return on equity. Despite outperforming the Sensex recently, the stock has a -38.75% return over the past year, raising concerns for long-term investors.
As of 07-Jul, SRU Steels Ltd's stock price is currently at 5.99, reflecting an increase of 0.11 or 1.87%. The stock has shown positive momentum recently, gaining 3.81% over the last two days and outperforming its sector by 2.05% today. Notably, the company has reported significant growth in net sales, with a 175.44% increase over the past nine months, and has achieved its highest quarterly PBDIT and PBT figures. However, despite these positive indicators, the stock has a concerning long-term outlook, evidenced by a -169.31% CAGR growth in operating profits over the last five years and a negative EBITDA, which raises questions about its sustainability and profitability.In the broader market context, SRU Steels has outperformed the Sensex in the short term, with a 1.87% increase over the past week compared to a -0.20% decline in the benchmark. However, the stock has significantly underperformed over the longer term, with a -38.75% return over the past year, while the market has generated a modest return of 1.74%. This stark contrast highlights the challenges SRU Steels faces, including weak debt servicing capabilities and low return on equity, which may deter long-term investors despite the recent positive price movement.
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