Why is T N Telecom. falling/rising?
As of 15-Jul, Tamil Nadu Telecommunications Ltd's stock price is declining at 25.08, down 1.99%, with a total drop of 3.94% over the last two days. Despite strong long-term returns, the company faces challenges such as a negative book value and weak fundamentals, contributing to decreased investor confidence and trading activity.
As of 15-Jul, Tamil Nadu Telecommunications Ltd is experiencing a decline in its stock price, currently at 25.08, which reflects a decrease of 0.51 or 1.99%. The stock has underperformed its sector today by 3.87% and has seen a consecutive fall over the last two days, resulting in a total drop of 3.94%. Despite this recent downturn, the company has shown impressive long-term performance, with a 155.92% return over the past year and a staggering 1384.02% over the last five years. However, the company faces challenges, including a negative book value and weak long-term fundamental strength, as evidenced by stagnant net sales growth and a high debt-to-equity ratio, which could be contributing to the current price decline.In the broader market context, the stock's recent performance contrasts sharply with the benchmark Sensex, which has seen a slight increase of 1.79% over the past month. While T N Telecom has outperformed the Sensex over longer periods, its recent struggles may be exacerbated by falling investor participation, as indicated by a 7.82% drop in delivery volume against the five-day average. This decline in trading activity, coupled with the company's negative earnings before interest, taxes, depreciation, and amortization (EBITDA) and flat quarterly results, suggests that investor confidence may be waning, leading to the stock's current downward trajectory.
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