Why is Supreme Facility falling/rising?
As of 22-Sep, Supreme Facility Management Ltd is priced at 39.95, down 1.36%, and has underperformed its sector. Despite a strong valuation and profit growth, high debt and weak investor confidence are contributing to its significant year-to-date decline of 15.63%.
As of 22-Sep, Supreme Facility Management Ltd is currently priced at 39.95, reflecting a decrease of 0.55, or 1.36%. The stock has underperformed its sector today by 0.65%, despite trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a slight decline of 0.12%, while it has gained 7.83% over the last month. However, the year-to-date performance shows a significant drop of 15.63%. The company has a very attractive valuation with a return on capital employed (ROCE) of 12.5, but it also faces challenges due to high debt and weak long-term fundamental strength, which may be contributing to the recent price decline.In the broader market context, the Sensex has increased by 0.53% over the past week and 1.34% over the past month, indicating that the stock's short-term performance is lagging behind the benchmark. The company's weak investor participation, evidenced by a 59.02% drop in delivery volume compared to the 5-day average, further suggests a lack of confidence among investors. While the company's profits have risen by 14% over the past year, the flat results expected in September 2024 and the poor EBIT to interest ratio indicate potential difficulties in servicing its debt, which could be impacting investor sentiment and contributing to the stock's decline.
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