Why is Tree House Edu. falling/rising?
As of 18-Nov, Tree House Education & Accessories Ltd's stock is priced at 8.00, having increased by 5.12% recently. Despite short-term gains, the stock faces long-term challenges due to operating losses and poor debt servicing ability, making it a risky investment.
As of 18-Nov, Tree House Education & Accessories Ltd's stock is currently priced at 8.00, reflecting an increase of 0.39 or 5.12%. The stock has been gaining for the last three days, with a total return of 12.68% during this period. However, it has underperformed its sector by 1.09% today. Despite the recent gains, the stock has a troubling long-term outlook, characterized by operating losses and a weak ability to service debt, as indicated by a poor EBIT to Interest ratio of -4.59. Additionally, the stock has consistently underperformed against benchmarks over the past three years, with a significant decline of -50.77% in the last year alone.In the broader market context, the stock's short-term return of +7.82% over the past week significantly outpaces the Sensex's return of +0.96%. This indicates a strong short-term performance relative to the market. However, the overall sentiment remains cautious due to the company's weak long-term fundamentals and high promoter share pledges, which could exert downward pressure on the stock in a declining market. The educational institutions sector has gained by 6.04%, which may have contributed to the stock's recent rise, but the underlying issues suggest that the stock remains a risky investment.
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