Why is Sukhjit Starch falling/rising?
As of 14-Jul, Sukhjit Starch & Chemicals Ltd is priced at 176.00 with no change, trading near its 52-week low and showing a year-to-date decline of -33.46%. The stock has underperformed against the sector and broader market, with declining investor participation and poor long-term growth metrics contributing to negative sentiment.
As of 14-Jul, Sukhjit Starch & Chemicals Ltd is currently priced at 176.00, showing no change (0.00%). The stock is trading close to its 52-week low, just 1.02% away from Rs 174.2. It has underperformed against the sector today, despite a slight outperformance by 0.61%. Over the past week, the stock has declined by 2.28%, and its year-to-date return stands at -33.46%. The stock is trading below all key moving averages, indicating a bearish trend. Additionally, there has been a decline in investor participation, with delivery volume falling by 8.1% against the 5-day average. While the stock has a very attractive valuation with a return on capital employed (ROCE) of 9.8 and is trading at a discount compared to peers, its profits have decreased by 20% over the past year, contributing to its negative performance.In the broader market context, the Sensex has shown a slight gain of 5.27% year-to-date, contrasting sharply with Sukhjit Starch's significant decline. The stock has consistently underperformed against the benchmark over the last three years, with a return of -23.16% in the past year. This underperformance is compounded by poor long-term growth metrics, such as net sales growth of only 13.39% annually over the last five years and a substantial drop in profit after tax in the latest quarter. Furthermore, the lack of investment from domestic mutual funds, which hold 0% of the company, suggests a lack of confidence in the stock's future prospects, reinforcing the negative sentiment surrounding it.
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