Why is T T falling/rising?
As of 19-Sep, T T Ltd's stock price is at 11.05, showing a short-term gain but a troubling long-term outlook with a 28.53% year-to-date decline and weak fundamentals. Despite outperforming the sector recently, the stock faces challenges due to low profitability and decreased investor participation.
As of 19-Sep, T T Ltd's stock price is currently at 11.05, reflecting an increase of 0.1 or 0.91%. The stock has shown a positive performance today, outperforming its sector by 0.71%. However, despite this short-term gain, the stock has a concerning long-term outlook, with a significant decline of 28.53% year-to-date and a 7.92% drop over the past year. The stock's performance is hindered by weak long-term fundamentals, including a negative compound annual growth rate (CAGR) of operating profits over the last five years and a high debt-to-EBITDA ratio of 13.20 times, indicating low profitability and a challenging financial position. Additionally, the stock's delivery volume has decreased by 30.07% against the five-day average, suggesting falling investor participation.In the broader market context, T T Ltd's short-term return of 3.46% over the past week significantly outpaces the Sensex's return of 0.88%. However, the company's consistent underperformance against benchmarks over the last three years raises concerns, as it has generated negative returns while the broader market has seen gains. The stock's valuation appears expensive relative to its low return on capital employed and has been trading at a discount compared to its peers. Overall, while there are short-term gains, the long-term outlook remains bleak due to fundamental weaknesses and declining investor interest.
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