Why is Sumit Woods falling/rising?
As of 20-Oct, Sumit Woods Ltd's stock price is declining at 85.25, down 4.33%, and has underperformed its sector significantly. The company faces weak financial metrics, a high debt-to-EBITDA ratio, and a year-to-date return of -40.38%, indicating challenges in maintaining growth and servicing debt.
As of 20-Oct, Sumit Woods Ltd is experiencing a decline in its stock price, currently at 85.25, which reflects a decrease of 3.86 points or 4.33%. The stock has underperformed its sector by 5.06% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a return of -6.54%, and its performance over the last month is similarly negative at -7.42%. Despite a rise in delivery volume by 22.53% against the 5-day average, the stock's overall performance has been poor, with a year-to-date return of -40.38% compared to a positive 9.30% for the benchmark. The company's return on capital employed (ROCE) is relatively low at 11.7, indicating fair valuation but weak long-term fundamental strength, further compounded by a high debt-to-EBITDA ratio of 7.16 times.In the broader market context, Sumit Woods has significantly underperformed compared to the benchmark, with the BSE500 generating a return of 0.80% over the past year while Sumit Woods has seen a staggering decline of -39.11%. This stark contrast highlights the stock's struggles in a generally positive market environment. The company's flat results, including a notable drop in net sales by 23.10% over the latest six months, contribute to investor concerns about its ability to service debt and maintain growth. Overall, the combination of weak financial metrics, poor recent performance, and unfavorable comparisons to market benchmarks has led to the stock's current downward trajectory.
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