Why is Tirupati Sarjan falling/rising?
As of 21-Aug, Tirupati Sarjan Ltd's stock price is 12.71, up 1.27%. Despite a recent price increase, the stock has underperformed long-term with a year-to-date return of -33.84% and concerns over high debt levels and weak returns on capital.
As of 21-Aug, Tirupati Sarjan Ltd's stock price is currently at 12.71, reflecting an increase of 0.16 or 1.27%. Today's price summary indicates that the stock has outperformed its sector by 0.75% and has experienced a trend reversal after two consecutive days of decline. However, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite a year-to-date return of -33.84%, the company has shown a profit increase of 14.1%, and its valuation appears attractive with a PEG ratio of 0.6. Nonetheless, the stock has underperformed in the long term, with a weak average return on capital employed (ROCE) of 7.79% and a high debt-to-EBITDA ratio of 4.42 times, which raises concerns about its ability to service debt.In the broader market context, Tirupati Sarjan's short-term performance has been notably poor, with a 1-week return of -4.44% compared to a positive return of +1.74% for the Sensex. This underperformance is further highlighted by its negative returns over the past month and year, indicating a struggle to keep pace with the market. While the stock's recent price increase may suggest some recovery, the overall trend remains concerning, especially given its long-term underperformance relative to broader indices like the BSE500.
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