Why is Tierra Agrotech falling/rising?
As of 17-Sep, Tierra Agrotech Ltd's stock price is Rs 43.00, up 3.91% after two days of decline, but it has a weak long-term outlook with a year-to-date drop of 26.18% and significant challenges such as negative EBITDA and high debt. Despite recent short-term gains, the overall sentiment remains cautious due to persistent underperformance against benchmarks.
As of 17-Sep, Tierra Agrotech Ltd's stock price is currently at Rs 43.00, reflecting an increase of Rs 1.62 or 3.91%. The stock has shown a trend reversal, gaining after two consecutive days of decline, and it outperformed its sector by 3.13% today. The stock reached an intraday high of Rs 43 and a low of Rs 40.3, with a weighted average price indicating more volume traded closer to the low price. Despite a year-to-date decline of 26.18% and a significant drop of 69.11% over the past three years, recent positive factors include a higher profit after tax of Rs 0.38 crore and the highest net sales of Rs 51.91 crore in the last quarter. However, the company faces challenges with weak long-term fundamentals, including a negative EBITDA and a high debt-to-EBITDA ratio, which contribute to its overall risk.In the broader market context, Tierra Agrotech's short-term performance has been relatively better than the benchmark, with a 1-week return of 2.80% compared to the Sensex's 1.56%. However, the stock has consistently underperformed against the benchmark over the last three years, indicating a troubling trend. While the stock has seen a rise today, its long-term outlook remains weak, with an average return on capital employed of 0% and a significant decline in operating profit over the past five years. This combination of short-term gains against a backdrop of long-term challenges suggests that while the stock may be experiencing a temporary uptick, the overall sentiment remains cautious.
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