Why is The Ramco Cement falling/rising?
As of 26-Sep, The Ramco Cements Ltd's stock price is Rs 998.00, down 2.7% after a seven-day decline of 6.29%. Despite a year-to-date return of 3.46%, concerns over a 58.5% profit decline and weak long-term fundamentals are impacting investor sentiment.
As of 26-Sep, The Ramco Cements Ltd is experiencing a decline in its stock price, currently at Rs 998.00, reflecting a decrease of Rs 27.65 or 2.7%. The stock has been underperforming, having fallen consecutively for the last seven days, resulting in a total decline of 6.29% during this period. Additionally, it has underperformed its sector by 1.23% today. While the stock is trading above its 200-day moving average, it is below its 5-day, 20-day, 50-day, and 100-day moving averages. Despite a year-to-date return of 3.46% and a one-year return of 15.78%, the company has reported a significant profit decline of 58.5% over the past year, which may be contributing to investor concerns.In the broader market context, the stock's recent performance contrasts with the benchmark, as it has underperformed the Sensex, which has seen a decline of only 2.66% over the past week. The company's high institutional holdings at 39.67% indicate a level of confidence among larger investors, but the weak long-term fundamentals, including a -3.70% CAGR growth in operating profits over the last five years and a high debt-to-EBITDA ratio of 3.04 times, raise red flags. Although the stock has shown resilience by generating positive returns in a declining market, the overall sentiment appears to be affected by its recent profit drops and the inability to service debt effectively, leading to its current downward price movement.
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