Why is Supreme Facility falling/rising?
As of 19-Nov, Supreme Facility Management Ltd's stock price is declining at 36.15, down 4.24%, and has underperformed its sector by 5.5%. Despite an attractive valuation, the company faces high debt and weak fundamentals, contributing to its poor performance in a generally favorable market.
As of 19-Nov, Supreme Facility Management Ltd is experiencing a decline in its stock price, currently at 36.15, reflecting a decrease of 1.6 or 4.24%. The stock has underperformed its sector by 5.5% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has fallen by 7.31%, and year-to-date, it has dropped 23.65%. Additionally, there has been a decrease in investor participation, with delivery volume falling by 9.09% against the 5-day average. While the company has a very attractive valuation with a return on capital employed (ROCE) of 10.8 and profits rising by 9% over the past year, it also faces significant challenges, including high debt levels and weak long-term fundamental strength, which contribute to its poor performance.In the broader market context, the Sensex has shown a positive return of 0.68% over the past week and a 10.18% increase year-to-date, contrasting sharply with Supreme Facility's negative performance. This disparity highlights the stock's struggle in a generally favorable market environment. The company's weak long-term growth, with net sales growing at an annual rate of only 12.90% and a poor EBIT to interest ratio of 1.92, further exacerbates its challenges. Overall, the combination of underperformance relative to the benchmark and internal financial weaknesses is driving the stock's decline.
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