Why is Team Lease Serv. falling/rising?
As of 25-Aug, Team Lease Services Ltd's stock price is declining at 1,830.00, down 1.13%, with a significant 43.61% loss over the past year. Despite short-term gains, long-term growth prospects are weak due to low operating profit growth and a substantial drop in delivery volume.
As of 25-Aug, Team Lease Services Ltd is experiencing a decline in its stock price, currently at 1,830.00, reflecting a decrease of 21.0 points or 1.13%. The stock has underperformed its sector by 1.47% today and has seen a trend reversal after six consecutive days of gains. In terms of returns, the stock has performed poorly over the past month, down 5.05%, and has generated a significant loss of 43.61% over the past year. While the company has a low debt-to-equity ratio and a reasonable return on equity of 12, the stock's long-term growth prospects appear weak, with operating profit growth averaging only 7.02% over the last five years. Additionally, the stock's performance has been hindered by a substantial drop in delivery volume, which has fallen by 70.12% against the five-day average.In the broader market context, the stock's short-term performance of +2.61% over the past week contrasts with the Sensex's modest gain of 0.45%, indicating some relative strength in the very short term. However, the stock's long-term performance is concerning, as it has underperformed the BSE500 over various time frames, including the last three years and one year. The high institutional holdings at 57.94% suggest that knowledgeable investors are closely monitoring the company's fundamentals, which may contribute to the stock's volatility. Despite the attractive valuation compared to peers, the flat results reported in June and the reliance on non-operating income raise red flags for potential investors, further contributing to the stock's downward movement.
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