Why is Universal Starch falling/rising?
As of 13-Jun, Universal Starch Chem Allied Ltd's stock price is Rs 165.00, down 5.28%, and has underperformed its sector and benchmark indices significantly. Despite some positive quarterly growth, the stock's bearish trend and weak long-term fundamentals indicate a challenging outlook.
As of 13-Jun, Universal Starch Chem Allied Ltd is experiencing a decline in its stock price, currently at Rs 165.00, which represents a decrease of Rs 9.2 or 5.28%. Today's price summary indicates that the stock has underperformed its sector by 5.46% and opened with a loss of 4.13%. It reached an intraday low of Rs 160, reflecting a significant drop of 8.15%. Over the past week, the stock has seen a slight decline of 0.48%, and its performance over the last month shows a more substantial decrease of 4.54%. Despite a notable increase in delivery volume on June 12, the stock is trading below all key moving averages, indicating a bearish trend. Additionally, while the company reported positive growth in profit before tax and profit after tax in its latest quarter, the overall performance has been lackluster, with a year-to-date return of -5.71% and a one-year return of -11.55%, alongside a significant drop in profits.In the broader market context, the stock's recent performance contrasts with the Sensex, which has shown a slight increase of 3.81% year-to-date. The stock's underperformance is evident as it has lagged behind the benchmark indices over various time frames, including the last three years, where it has generated negative returns compared to the Sensex's positive growth. The company's weak long-term fundamentals, including a poor EBIT to interest ratio and a history of underperformance, further contribute to investor sentiment that may be driving the stock lower. Overall, the combination of negative short-term price movements, poor long-term fundamentals, and underperformance relative to the benchmark suggests a challenging environment for Universal Starch Chem Allied Ltd.
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