Why is Texmaco Rail falling/rising?
As of 25-Aug, Texmaco Rail & Engineering Ltd's stock price is declining at 142.50, down 0.94%, with a year-to-date drop of 26.47%. Despite a strong long-term growth rate, high debt levels and a significant drop in profit after tax are negatively impacting investor sentiment and stock performance.
As of 25-Aug, Texmaco Rail & Engineering Ltd is experiencing a decline in its stock price, currently at 142.50, which reflects a decrease of 1.35 (-0.94%). The stock has underperformed its sector by 0.78% today and has seen a trend reversal after two consecutive days of gains. In terms of returns, the stock has increased by 6.03% over the past week but has declined by 6.71% over the last month and 42.86% year-over-year. Despite a healthy long-term growth rate in operating profit of 39.44% and an attractive valuation with a PEG ratio of 0.7, the stock's performance is hindered by a high Debt to EBITDA ratio of 3.26 times, indicating a low ability to service debt. Additionally, the company's profit after tax has fallen significantly by 49.9%, contributing to negative sentiment among investors.Broader market context shows that while the Sensex has gained 0.45% over the past week and 4.48% year-to-date, Texmaco Rail's performance has been notably weaker, with a year-to-date decline of 26.47%. Institutional investors have also reduced their stake in the company by 0.53% over the previous quarter, reflecting a lack of confidence in its fundamentals compared to the broader market. This decline in institutional participation, coupled with the company's low return on equity of 3.61% and the lowest operating profit to interest ratio at 2.31 times, suggests that the stock is facing significant challenges that are contributing to its downward price movement.
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