Why is Supreme Facility falling/rising?
As of 17-Sep, Supreme Facility Management Ltd's stock price is at 38.05, down 4.88%, and has underperformed its sector by 5.41%. Despite a positive monthly return of 2.28%, the stock has declined 19.64% year-to-date, facing challenges from high debt and weak fundamentals, which are contributing to its recent poor performance.
As of 17-Sep, Supreme Facility Management Ltd's stock price is currently at 38.05, reflecting a decline of 1.95, or 4.88%. The stock has underperformed its sector today by 5.41%, with a notable decrease in investor participation, as evidenced by a 66.44% drop in delivery volume compared to the 5-day average. While the stock has shown a positive return of 2.28% over the past month, it has significantly underperformed year-to-date with a decline of 19.64%. The company has a relatively attractive valuation with a return on capital employed (ROCE) of 12.5%, but it also faces challenges due to high debt levels and weak long-term fundamental strength, which may contribute to the recent price decline.In the broader market context, the Sensex has increased by 1.43% over the past week, contrasting with Supreme Facility's decline of 4.99% during the same period. This indicates that while the overall market is experiencing positive momentum, Supreme Facility is lagging behind. Additionally, the company's weak ability to service its debt, highlighted by a poor EBIT to Interest ratio of 1.92, raises concerns among investors, further impacting its stock performance. Overall, the combination of high debt, weak long-term growth prospects, and declining investor interest appears to be driving the stock's recent downward movement.
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