Why is Sterling & Wils. falling/rising?
As of 29-Jul, Sterling & Wilson Renewable Energy Ltd's stock price has risen to Rs 291.50, reflecting a 2.17% increase, but it has declined 5.68% over the past week and 57.19% over the past year. Despite recent positive earnings, the stock faces long-term challenges, including low ROCE and high pledged promoter shares, which may impact investor confidence.
As of 29-Jul, Sterling & Wilson Renewable Energy Ltd is experiencing a price increase, currently at Rs 291.50, reflecting a rise of Rs 6.2 or 2.17%. Today's price summary indicates that the stock has outperformed its sector by 1.61% and has shown a trend reversal after four consecutive days of decline, reaching an intraday high of Rs 291.7. However, the stock's performance over the past week and month has been negative, with declines of 5.68% and 8.56%, respectively. Despite a significant drop of 57.19% over the past year, the company has reported very positive results, including a 38.55% growth in operating profit and a 104.52% increase in net sales over the last six months, contributing to a favorable perception among investors.In the broader market context, the stock's recent performance contrasts with the Sensex, which has only declined by 1.03% over the past week. While the stock has shown some positive short-term movements, it continues to face challenges, including weak long-term fundamentals and a high percentage of pledged promoter shares, which could exert downward pressure in a falling market. The stock's average return on capital employed (ROCE) remains low at 3.77%, and its long-term growth rates are concerning, which may affect investor confidence despite the recent positive earnings reports.
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