Why is Surat Trade falling/rising?
As of 18-Sep, Surat Trade & Merchantile Ltd's stock price remains unchanged at 6.15, reflecting a bearish trend as it trades below all key moving averages. Despite a recent increase in delivery volume, the stock has significantly underperformed with a year-to-date decline of 23.51% and faces serious long-term financial challenges.
As of 18-Sep, Surat Trade & Merchantile Ltd's stock price is flat at 6.15, showing no change (0.00%). The stock is currently trading lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Despite a rise in delivery volume by 39.86% against the 5-day average, the stock has underperformed significantly over various time frames, with a year-to-date decline of 23.51% and a one-year return of -33.01%. The company reported its highest net sales and operating profit margins recently, but it faces serious long-term challenges, including a -184.72% CAGR growth in operating profits over the last five years and a negative EBITDA, which raises concerns about its financial health and ability to service debt.In the broader market context, the stock's performance has been notably weaker compared to the benchmark, with a 1-month return of -4.50% against the Sensex's +2.14%. This consistent underperformance over the last three years, coupled with a poor return on capital employed of 3.45%, suggests that investor confidence is waning. The stock's risk profile is further exacerbated by its negative EBIT to interest ratio, indicating a lack of profitability. Overall, while there has been some positive movement in terms of sales and investor participation, the fundamental weaknesses and historical performance relative to the benchmark paint a concerning picture for Surat Trade & Merchantile Ltd.
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