Why is Texmaco Rail falling/rising?
As of 18-Aug, Texmaco Rail & Engineering Ltd's stock price is 134.40, having increased slightly but underperforming its sector and showing a significant decline over the past month and year. The company faces challenges with high debt levels and declining institutional interest, contributing to negative sentiment despite long-term growth potential.
As of 18-Aug, Texmaco Rail & Engineering Ltd's stock price is currently at 134.40, reflecting an increase of 1.15 (0.86%). Despite this slight uptick, the stock has underperformed its sector by 0.38% today and is trading below its moving averages across multiple time frames. Over the past week, the stock has decreased by 3.20%, and its performance over the last month shows a significant decline of 15.18%. Although the company has reported a healthy long-term growth in operating profit at an annual rate of 39.44%, it faces challenges such as a high Debt to EBITDA ratio of 3.26 times, indicating a low ability to service debt, and a substantial year-over-year decline in PAT of 49.9%. Additionally, institutional investor participation has decreased, suggesting a lack of confidence in the stock's future performance.In the broader market context, while the Sensex has shown a positive return of 0.83% over the past week, Texmaco Rail's performance has been notably weaker, highlighting its struggles relative to the market. The stock's year-to-date return is down 30.65%, contrasting sharply with the Sensex's gain of 4.01%. This underperformance is further emphasized by the stock's significant decline of 46.19% over the past year, compared to the BSE500's negative return of only 1.14%. The combination of declining institutional interest and poor financial metrics has contributed to a negative sentiment surrounding the stock, overshadowing its potential for long-term growth.
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