Why is TGB Banquets falling/rising?
As of 10-Jul, TGB Banquets & Hotels Ltd's stock price is declining at 12.01, down 2.67%, with a year-to-date drop of 13.29%. Despite strong quarterly results, the company's weak long-term fundamentals and high pledged shares are contributing to its underperformance compared to the broader market.
As of 10-Jul, TGB Banquets & Hotels Ltd is experiencing a decline in its stock price, currently at 12.01, down by 0.33 or 2.67%. The stock has underperformed its sector by 2.46% today and has been on a consecutive fall for the last two days, resulting in a total decline of 4.23%. Over the past week, the stock has decreased by 2.75%, and its year-to-date performance shows a significant drop of 13.29%. Despite positive quarterly results, including a 33.3% growth in net sales and a 154.5% increase in profits over the past year, the stock's long-term fundamentals are weak, with a return on capital employed of 0% and a concerning debt servicing capability. Additionally, 30.41% of promoter shares are pledged, which can exert further downward pressure on the stock price in a declining market.In the broader market context, the stock's short-term performance has been notably worse than the benchmark, with the Sensex showing a minimal decline of only 0.06% over the past week. The stock's long-term underperformance is also evident, as it has generated a negative return of 30.26% over the last year, while the broader market has seen a positive return of 1.46%. This stark contrast highlights the challenges TGB Banquets faces in regaining investor confidence, particularly given its weak long-term growth metrics and the high percentage of pledged shares, which may deter potential investors.
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