Why is Sterling & Wils. falling/rising?
As of 30-Jul, Sterling & Wilson Renewable Energy Ltd's stock price is at 287.50, down 1.37%, with a significant 57.90% decline over the past year despite recent profit growth. The stock's weak long-term fundamentals and high pledged promoter shares contribute to its underperformance compared to the market.
As of 30-Jul, Sterling & Wilson Renewable Energy Ltd is experiencing a decline in its stock price, currently at 287.50, which reflects a decrease of 4.0 or 1.37%. The stock has underperformed its sector by 2.06% today, and its delivery volume has fallen by 11.31% compared to the 5-day average, indicating a decrease in investor participation. Over the past week, the stock has dropped by 5.69%, and it has shown a significant decline of 57.90% over the past year, despite the company reporting a growth in operating profit of 38.55% and positive results for the last six consecutive quarters. However, the long-term fundamentals appear weak, with a low average return on capital employed (ROCE) of 3.77% and a concerning EBIT to interest ratio of -4.62, which may contribute to the stock's downward pressure.In the broader market context, the stock's performance has been notably worse than the benchmark, with the Sensex only declining by 1.50% over the past week and 2.54% over the past month, while Sterling & Wilson has seen much steeper losses. The company's stock has also underperformed the market significantly over the past year, where the BSE500 index generated negative returns of -2.34%. Additionally, the presence of 27.62% of promoter shares being pledged adds to the downward pressure in a falling market, further exacerbating the stock's decline.
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