Why is Umiya Buildcon falling/rising?
As of 17-Jul, Umiya Buildcon Ltd's stock price is at 81.60, showing a 1.24% increase and strong short-term performance. However, its year-to-date return of 1.97% underperforms the Sensex, and concerns about long-term fundamentals persist due to low ROCE and high debt levels.
As of 17-Jul, Umiya Buildcon Ltd's stock price is currently at 81.60, reflecting an increase of 1.0 or 1.24%. The stock has shown strong performance today, outperforming its sector by 1.2%. It is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating positive momentum. Over the past week, the stock has risen by 1.96%, and in the last month, it has gained 16.41%, while the Sensex has only increased by 0.83%. Positive factors contributing to this rise include a significant growth in net sales by 32.45% over the last six months, a record high profit after tax of Rs 31.43 crore, and an earnings per share of Rs 16.83. Additionally, promoter confidence is evident as they have increased their stake in the company by 0.91%, now holding 60.94% of the company.In contrast, the broader market context shows that while Umiya Buildcon has performed well in the short term, its year-to-date return of 1.97% lags behind the Sensex's 5.27%. The stock's long-term fundamental strength is a concern, with a low return on capital employed (ROCE) of 3.72% and a high debt to EBITDA ratio of 16.31 times, indicating potential difficulties in servicing debt. Although the stock is trading at a discount compared to its peers' historical valuations, the overall weak long-term fundamentals could temper investor enthusiasm despite the recent positive movements.
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