Why is Supreme Facility falling/rising?
As of 16-Sep, Supreme Facility Management Ltd's stock price remains unchanged at 40.00, with a recent decline of 1.23% over the past week. Despite a better performance over the past month, the stock has a year-to-date decline of 15.52%, raising concerns about its long-term growth potential due to high debt and weak fundamentals.
As of 16-Sep, Supreme Facility Management Ltd's stock price is flat at 40.00, with no change (0.00%). The stock's performance today is inline with the sector, although it has shown a decline of 1.23% over the past week, while the benchmark Sensex has increased by 1.49%. The stock has performed better over the past month with a return of 7.53%, compared to the Sensex's 2.47%. However, the stock has a year-to-date decline of 15.52%, contrasting sharply with the Sensex's gain of 6.74%. Today's trading volume indicates falling investor participation, with a significant drop of 66.44% in delivery volume compared to the 5-day average. Despite a very attractive valuation indicated by a ROCE of 12.5 and a favorable enterprise value to capital employed ratio, the company faces challenges due to high debt and weak long-term fundamental strength.Broader Market Context: The stock's recent performance is underwhelming compared to the benchmark, particularly in the short term, where it has lagged behind the Sensex. The company's weak ability to service its debt, as evidenced by a poor EBIT to interest ratio of 1.92, raises concerns about its long-term growth potential, which has only seen modest increases in net sales and operating profit over the last five years. Additionally, the flat results anticipated for September 2024 further contribute to a cautious outlook among investors, impacting the stock's price stability and overall market perception.
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