Why is Sterling & Wils. falling/rising?
As of 11-Jun, Sterling & Wilson Renewable Energy Ltd's stock is at 321.55, up 4.64% after a four-day gain of 8.34%. Despite strong recent performance and significant profit growth, long-term fundamentals are weak, leading to potential investor caution.
As of 11-Jun, Sterling & Wilson Renewable Energy Ltd's stock price is rising, currently at 321.55, reflecting an increase of 14.25 or 4.64%. The stock has been on an upward trend, gaining for the last four days and achieving a total return of 8.34% during this period. It outperformed its sector by 4.15% today and reached an intraday high of Rs 328.4. The company has shown outstanding financial results, with a net profit growth of 220.95% and consistent positive results over the last five quarters. However, despite these positive indicators, the stock has a weak long-term fundamental strength, with a negative CAGR growth in operating profits over the last five years and a poor EBIT to interest ratio, which may temper investor enthusiasm.In the broader market context, the stock's short-term performance has significantly outpaced the benchmark, with a 1-week return of 6.28% compared to the Sensex's 1.87%. While the stock has shown strong recent gains, it has underperformed the market over the past year, with a return of -59.63% against the BSE 500's 5.98%. This disparity highlights the challenges the company faces despite its recent positive performance, including high promoter share pledges and weak profitability metrics, which could lead to caution among investors in the long term.
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