Why is Stove Kraft falling/rising?
As of 29-Aug, Stove Kraft Ltd's stock is priced at 643.25, having increased by 0.7% after two days of decline. Despite recent gains and increased institutional interest, the stock has underperformed its sector and the broader market over the long term, with a year-to-date decline of 26.06%.
As of 29-Aug, Stove Kraft Ltd's stock is currently priced at 643.25, reflecting an increase of 4.45, or 0.7%. The stock has shown a trend reversal, gaining after two consecutive days of decline, and reached an intraday high of Rs 657.35. Despite this positive movement today, the stock has underperformed its sector by 0.98%. Over the past week, Stove Kraft has experienced a decline of 3.29%, while it has seen a more favorable return of 7.66% over the past month. However, the stock's year-to-date performance remains negative at -26.06%. Positive factors include an attractive valuation with a return on capital employed (ROCE) of 10.3 and a rising participation from institutional investors, who have increased their stake by 0.75% in the last quarter. Conversely, the stock has faced challenges with a long-term growth rate of operating profit declining by -6.94% over the past five years and a significant drop in net sales and profit before tax in the latest quarter.Broader market context indicates that while Stove Kraft has outperformed the benchmark Sensex in the short term, with a 7.66% gain over the past month compared to the Sensex's -1.88%, it has still underperformed over the longer term. The stock's year-over-year return of -19.66% starkly contrasts with the Sensex's decline of only -2.83%. This suggests that despite some recent positive movements and increased institutional interest, the stock's overall performance has been significantly weaker than the broader market, reflecting investor concerns about its long-term growth potential.
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