Why is Sunrakshakk Inds falling/rising?
As of 17-Sep, Sunrakshakk Industries India Ltd's stock price is Rs 1,059.00, down 1.94%, with an 8.15% decline over the past week. Despite strong long-term growth, recent negative factors and high valuation metrics have led to decreased investor confidence and underperformance compared to the market.
As of 17-Sep, Sunrakshakk Industries India Ltd is experiencing a decline in its stock price, currently at Rs 1,059.00, which reflects a decrease of Rs 20.9 or 1.94%. The stock has been underperforming, having lost 8.15% over the last seven days, and it touched an intraday low of Rs 1,009.75. Additionally, the stock's performance today has underperformed its sector by 2.95%. Despite a strong long-term growth trajectory, with net sales growing at an annual rate of 53.70% and a remarkable 348.54% return over the past year, negative factors such as a decline in profit after tax and low cash reserves have contributed to the recent price drop. The company's high valuation metrics, including a PEG ratio of 10.5, may also deter investors, especially given the lack of domestic mutual fund interest.In the broader market context, the stock's short-term performance has significantly lagged behind the benchmark Sensex, which has gained 1.56% over the past week while Sunrakshakk has declined by 6.29%. This stark contrast highlights the stock's recent struggles despite its impressive long-term returns, which have outperformed the BSE500 over the last three years. The falling investor participation, indicated by a 27.96% drop in delivery volume, further suggests a lack of confidence among traders, contributing to the stock's downward trend.
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