Why is Thomas Cook (I) falling/rising?
As of 13-Nov, Thomas Cook (India) Ltd's stock price is Rs 149.05, down 3.06%, with significant declines over the past week and month, and a yearly return of -22.02%. Despite strong long-term growth in operating profit, the stock's recent performance is hindered by low investor participation and reliance on non-operating income.
As of 13-Nov, Thomas Cook (India) Ltd is experiencing a decline in its stock price, currently at Rs 149.05, which represents a decrease of Rs 4.7 or 3.06%. The stock has underperformed its sector by 0.3% today and reached an intraday low of Rs 144.2, marking a significant drop of 6.21%. Over the past week, the stock has fallen by 2.93%, and its performance over the last month shows a decline of 7.19%. Additionally, the stock has underperformed the market over the past year, with a return of -22.02% compared to the Sensex's gain of 8.74%. Despite a healthy long-term growth rate in operating profit of 26.45% and a low debt-to-equity ratio, the stock's recent performance has been negatively impacted by a significant drop in investor participation, with delivery volume falling by 69.42% against the 5-day average.Broader Market Context: The broader market context indicates that the travel services sector has also faced challenges, with a decline of 2.75%. While the overall market, represented by the Sensex, has shown positive returns in the short term, Thomas Cook's performance has lagged significantly behind, highlighting a disconnect between the company's stock and market trends. The stock's trading below all major moving averages further suggests a bearish sentiment among investors. The company's reliance on non-operating income, which constitutes 40.50% of its profit before tax, raises concerns about its operational stability, contributing to its underperformance relative to the market.
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