Why is Supreme Facility falling/rising?
As of 13-Aug, the stock price of Supreme Facility Management Ltd is at 37.00, unchanged. The stock has underperformed year-to-date with a decline of 21.86%, attributed to high debt and weak fundamentals, despite a recent monthly increase of 9.47%.
As of 13-Aug, the stock price of Supreme Facility Management Ltd is currently at 37.00, showing no change (0.00%). The stock's performance today is inline with the sector, although it is higher than the 50-day and 100-day moving averages but lower than the 5-day, 20-day, and 200-day moving averages. Over the past week, the stock has remained flat with a return of 0.00%, while it has increased by 9.47% over the past month. However, it has experienced a significant decline of 21.86% year-to-date. The delivery volume has fallen sharply by 88.1% against the 5-day average, indicating a decrease in investor participation. Despite an attractive valuation with a return on capital employed (ROCE) of 14 and a 1.3 enterprise value to capital employed ratio, the company is burdened by high debt and weak long-term fundamental strength, which could be contributing to the stock's stagnant price.In the broader market context, the Sensex has shown a slight increase of 0.18% over the past week, while Supreme Facility's performance has been flat. The stock's year-to-date decline of 21.86% contrasts sharply with the Sensex's positive return of 4.12%, indicating that the stock is underperforming relative to the market. This underperformance may be attributed to the company's weak ability to service its debt, as evidenced by a poor EBIT to interest ratio of 1.92, alongside flat results expected in September 2024. The combination of high debt levels and lackluster growth in net sales and operating profit over the past five years suggests that investor confidence may be waning, further impacting the stock's price stability.
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