Why is Supreme Facility falling/rising?
As of 29-Jul, Supreme Facility Management Ltd's stock price is at 37.20, down 2.75%, with a year-to-date decline of 21.44%. Despite a positive monthly return of 13.07%, high debt levels and weak fundamentals are impacting investor confidence and contributing to the stock's recent underperformance.
As of 29-Jul, Supreme Facility Management Ltd's stock price is currently at 37.20, reflecting a decrease of 1.05, or 2.75%. The stock has underperformed its sector today by 3.95%, and its delivery volume has significantly dropped by 50% compared to the 5-day average, indicating falling investor participation. Over the past week, the stock has declined by 0.80%, while it has shown a more positive trend over the past month with a return of 13.07%. However, year-to-date, the stock has suffered a substantial decline of 21.44%. Despite an attractive valuation indicated by a ROCE of 14 and a favorable enterprise value to capital employed ratio of 1.4, the company faces challenges due to high debt levels and weak long-term fundamental strength, which may be contributing to the recent price decline.In the broader market context, the Sensex has experienced a slight decline of 0.96% over the past week, suggesting that the overall market sentiment is somewhat negative. While Supreme Facility's short-term performance has been better than the benchmark over the past month, the significant year-to-date decline indicates underlying issues that may be affecting investor confidence. The company's poor ability to service its debt, reflected in a low EBIT to interest ratio of 1.92, along with flat results expected in September 2024, further complicates its outlook and may be influencing the stock's downward movement.
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