Why is Sundaram Fin.Hol falling/rising?
As of 09-Jul, Sundaram Finance Holdings Ltd's stock price is declining at 487.90, down 0.26%, and has underperformed its sector today. Despite strong long-term fundamentals, recent negative financial results and high valuation are contributing to the stock's downward trend.
As of 09-Jul, Sundaram Finance Holdings Ltd is experiencing a decline in its stock price, currently at 487.90, which reflects a decrease of 1.25 or 0.26%. The stock has underperformed its sector by 0.64% today, and while it remains above the 20, 50, 100, and 200-day moving averages, it is below the 5-day moving average. The delivery volume has also decreased significantly, falling by 38.03% compared to the 5-day average. Despite a strong long-term fundamental strength indicated by a 27.53% CAGR growth in operating profits and consistent returns over the last three years, the recent negative results, including a 60.23% fall in EPS and a significant decline in net sales and profits, are contributing to the current downward price movement.In the broader market context, the stock's performance over the past week shows a decline of 0.80%, while the benchmark Sensex has increased by 0.09%. Over the past month, Sundaram Finance Holdings Ltd has outperformed the Sensex with an 18.25% increase compared to the benchmark's 1.49%. However, the recent negative financial results and the expensive valuation, with a price-to-book value of 1.9, may be causing investors to reassess their positions, leading to the current decline in stock price despite its strong historical performance.
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