Why is Texmo Pipes falling/rising?
As of 12-Sep, Texmo Pipes & Products Ltd is priced at 59.30, having gained 0.51% recently but underperforming its sector today. Despite a short-term gain, the stock has a year-to-date decline of 8.00% and weak long-term fundamentals, raising investor concerns.
As of 12-Sep, Texmo Pipes & Products Ltd is currently priced at 59.30, reflecting an increase of 0.3 or 0.51%. The stock has been gaining for the last three days, with a total return of 4.81% during this period. However, it has underperformed its sector by 1.03% today. Despite the recent gains, the stock has a year-to-date decline of 8.00% and a significant one-year drop of 24.92%. The company's return on capital employed (ROCE) is at 8.6, indicating a very attractive valuation, and it is trading at a discount compared to its peers. However, the stock's long-term fundamentals are weak, with poor growth in net sales and operating profit over the last five years, which may contribute to investor caution.In the broader market context, Texmo Pipes has outperformed the Sensex with a 1-week return of 3.87% compared to the benchmark's 1.48%. However, the stock has consistently underperformed against the benchmark over the last three years, which could dampen investor sentiment. The company's ability to service its debt is also a concern, as indicated by a poor EBIT to interest ratio. While there has been rising investor participation, as evidenced by a significant increase in delivery volume, the overall weak long-term growth prospects and consistent underperformance against the benchmark may overshadow the recent positive price movement.
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