Why is The Hi-Tech Gear falling/rising?
As of 31-Jul, The Hi-Tech Gears Ltd's stock price is 700.55, down 2.01%, with a month decline of 5.02% and a year-to-date drop of 12.57%. Despite a Return on Capital Employed of 11.1, the company's weak fundamentals and declining profits have led to diminished investor confidence.
As of 31-Jul, The Hi-Tech Gears Ltd is experiencing a decline in its stock price, currently at 700.55, which reflects a decrease of 14.35 or 2.01%. The stock has underperformed its sector today by 1.32%, and it has shown erratic trading patterns, not trading on one day out of the last twenty. In terms of returns, the stock has decreased by 5.02% over the past month and has a year-to-date decline of 12.57%, contrasting with the Sensex, which has gained 4.75% year-to-date. The company has a Return on Capital Employed (ROCE) of 11.1, indicating an attractive valuation, but its profits have fallen by 16.9% over the past year, contributing to the stock's downward pressure.In the broader market context, the stock's recent performance has been weaker than the benchmark, as it has seen a 0.32% increase over the past week compared to a 1.17% decline in the Sensex. This suggests that while the stock has shown some resilience in the short term, it is still lagging behind the overall market. Additionally, the company's weak long-term fundamentals, characterized by a high Debt to EBITDA ratio and low growth in net sales, further exacerbate investor concerns, leading to a lack of confidence reflected in the negligible interest from domestic mutual funds.
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