Why is Supreme Facility falling/rising?
As of 26-Sep, Supreme Facility Management Ltd's stock price is at 37.45, down 6.37%, with a significant drop in delivery volume and a year-to-date decline of 20.91%. The company faces high debt and weak fundamentals, leading to negative investor sentiment despite a relatively attractive valuation.
As of 26-Sep, Supreme Facility Management Ltd's stock price is currently at 37.45, reflecting a decrease of 2.55, or 6.37%. The stock has underperformed its sector by 4.29% today, and its delivery volume has significantly dropped by 57.14% compared to the 5-day average, indicating falling investor participation. Over the past week, the stock has declined by 7.53%, and year-to-date, it has seen a substantial drop of 20.91%. Despite a relatively attractive valuation with a return on capital employed (ROCE) of 12.5%, the company is burdened by high debt and weak long-term fundamental strength, which has negatively impacted investor sentiment.In the broader market context, the Sensex has only decreased by 2.65% over the past week, suggesting that the stock's decline is more pronounced than the overall market trend. While the stock has generated no returns over the past year, its profits have increased by 14%, which contrasts with the poor long-term growth indicated by a net sales growth rate of 12.90% and an operating profit growth of 13.65% over the last five years. The company's weak ability to service its debt, highlighted by a poor EBIT to interest ratio of 1.92, further exacerbates concerns among investors, contributing to the stock's downward movement.
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