Why is Unitech falling/rising?
As of 02-Sep, Unitech Ltd's stock price is at 7.00, down 0.28%, and has underperformed its sector. The company shows weak fundamentals, negative book value, and a poor ability to service debt, leading to significant underperformance compared to market benchmarks.
As of 02-Sep, Unitech Ltd's stock price is currently at 7.00, reflecting a decrease of 0.02, or 0.28%. The stock has underperformed its sector by 1.33% today and has experienced a consecutive decline over the last two days, resulting in a total drop of 1.41%. Additionally, Unitech is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. The company has a negative book value and has shown weak long-term fundamental strength, with net sales declining at an annual rate of 25.50% and operating profit plummeting by 191.94% over the past five years. Furthermore, the company's ability to service its debt is compromised, as evidenced by a poor EBIT to interest ratio of -0.86. Domestic mutual funds hold only a minimal stake of 0.01%, suggesting a lack of confidence in the company's prospects.In the broader market context, Unitech's performance has been notably worse than the benchmark, with a year-to-date return of -23.58% compared to the Sensex's gain of 2.58%. Over the past year, while the overall market (BSE500) has generated negative returns of -4.82%, Unitech's stock has significantly underperformed with a return of -23.08%. This stark contrast highlights the stock's struggles and the broader investor sentiment surrounding it, particularly given its negative financial indicators and declining investor participation, as shown by a 9.78% drop in delivery volume against the 5-day average.
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