Why is Super Spinning falling/rising?
As of 17-Sep, Super Spinning Mills Ltd's stock price is Rs 9.05, down 1.2%, and has underperformed significantly, with a year-to-date decline of 33.01%. The company faces weak fundamentals, including a -42.93% CAGR in net sales over five years and challenges in servicing debt, contributing to negative market sentiment.
As of 17-Sep, Super Spinning Mills Ltd is experiencing a decline in its stock price, currently at Rs 9.05, which reflects a decrease of 0.11 or 1.2%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total return of -3.72% during this period. It is also trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The stock is close to its 52-week low, being only 4.97% away from Rs 8.6. Additionally, the company has shown weak long-term fundamental strength, with a significant -42.93% CAGR growth in net sales over the past five years and a poor EBIT to interest ratio of 0.49, indicating challenges in servicing its debt.In the broader market context, Super Spinning Mills has underperformed relative to the Sensex, which has gained 1.56% over the past week while the stock has declined by 1.84%. This trend of underperformance is consistent over longer periods, with the stock down 33.01% year-to-date compared to a 5.83% increase in the benchmark. Despite a rise in investor participation, as indicated by a 15.35% increase in delivery volume, the overall sentiment remains negative due to the company's reported losses and negative return on equity. The stock's valuation appears expensive relative to its weak fundamentals, contributing to its downward trajectory in the market.
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