Why is Texmaco Rail falling/rising?
As of 05-Sep, Texmaco Rail & Engineering Ltd is priced at 139.20, showing a slight increase but significant underperformance over the past year with a -39.15% decline. The stock has a healthy long-term growth rate but faces challenges such as high debt and reduced institutional interest, indicating potential investor concerns.
As of 05-Sep, Texmaco Rail & Engineering Ltd is currently priced at 139.20, reflecting a slight increase of 0.35 or 0.25%. The stock's performance today is in line with the sector, although it is trading higher than its 5-day moving averages but lower than the 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a return of +1.68%, outperforming the Sensex, which returned +1.13%. However, the stock has underperformed over the longer term, with a -3.70% return over the past month and a significant -39.15% decline over the past year. Positive factors include a healthy long-term growth rate in operating profit of 39.44% and a favorable PEG ratio of 0.7, indicating attractive valuation despite the stock trading at a discount compared to its peers. Conversely, the company faces challenges such as a high Debt to EBITDA ratio of 3.26, low profitability per unit of shareholders' funds, and a substantial -49.9% drop in PAT for the quarter, which may contribute to investor concerns.Broader market context shows that while the stock has experienced a decline of -39.15% over the past year, the broader market, represented by the BSE500, has only fallen by -4.41%. This stark contrast highlights the stock's significant underperformance relative to the market. Additionally, there has been a decrease in institutional investor participation, with a -0.53% reduction in their stake, indicating a lack of confidence among more knowledgeable investors. The liquidity of the stock remains adequate for trading, but the falling delivery volume suggests waning interest from retail investors, which could further pressure the stock's price in the near term.
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