Why is Supreme Facility falling/rising?
As of 25-Jul, Supreme Facility Management Ltd's stock price is at 37.90, down 0.39%. Despite a recent increase in investor participation and a positive monthly return, the stock faces challenges from high debt and weak fundamentals, resulting in a year-to-date decline of 19.96%.
As of 25-Jul, Supreme Facility Management Ltd's stock price is currently at 37.90, reflecting a decrease of 0.15, or 0.39%. Today's price summary indicates that the stock has outperformed its sector by 0.55%, with a notable increase in delivery volume by 140.38% compared to the 5-day average, suggesting rising investor participation. However, despite a positive return of 14.16% over the past month, the stock has faced challenges, including a significant year-to-date decline of 19.96%. The company has an attractive valuation with a return on capital employed (ROCE) of 14, but it also carries high debt and weak long-term fundamental strength, which may be contributing to the stock's recent downward movement.In the broader market context, the stock's performance over the past week shows a decline of 1.17%, while the benchmark Sensex has decreased by only 0.53%, indicating that Supreme Facility is underperforming relative to the market. The company's weak ability to service its debt, highlighted by a poor EBIT to interest ratio of 1.92, raises concerns about its long-term growth potential, which is reflected in its flat results expected in September 2024. Overall, while there are some positive indicators such as rising investor interest and attractive valuation metrics, the combination of high debt and weak fundamentals appears to be weighing on the stock's price.
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