Why is Super Spinning falling/rising?
As of 16-Sep, Super Spinning Mills Ltd's stock price is declining at 9.16, down 2.55%, and has underperformed its sector. The company shows weak fundamentals with significant losses and a negative return on equity, contributing to its bearish trend and low investor participation.
As of 16-Sep, Super Spinning Mills Ltd is experiencing a decline in its stock price, currently at 9.16, reflecting a decrease of 0.24 or 2.55%. The stock has underperformed its sector by 4% today and has fallen after two consecutive days of gains. It is trading below all key moving averages, indicating a bearish trend. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 45.54% compared to the five-day average. The company has shown weak long-term fundamental strength, with a -42.93% CAGR growth in net sales over the last five years, and it has reported losses, leading to negative return on equity (ROE). This consistent underperformance against the benchmark, particularly over the last three years, further exacerbates the stock's decline.In the broader market context, the stock's performance over the past week shows a decline of 0.43%, while the Sensex has increased by 1.58%. Over the past month, Super Spinning has managed a slight gain of 0.55%, but this is overshadowed by a year-to-date decline of 32.20%, compared to a 5.43% rise in the benchmark. The company's poor ability to service its debt, indicated by a low EBIT to interest ratio of 0.49, coupled with a very expensive valuation relative to its returns, suggests a challenging environment for recovery. Overall, the stock's persistent underperformance and negative financial indicators contribute to its current downward trajectory.
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