Why is Viceroy Hotels falling/rising?
As of 15-Jul, Viceroy Hotels Ltd's stock price is Rs 103.07, up 5.14% recently, but it has weak long-term fundamentals with a low ROCE of 1.52% and high debt levels. Despite short-term gains, the stock has underperformed over the past year, indicating caution for investors.
As of 15-Jul, Viceroy Hotels Ltd's stock price is currently at Rs 103.07, reflecting an increase of Rs 5.04 or 5.14%. The stock has been gaining for the last four days, with a total return of 6.04% during this period. It has outperformed its sector by 3.46% today. However, despite this recent uptick, the company has shown weak long-term fundamental strength, with a low Return on Capital Employed (ROCE) of 1.52% and a high Debt to EBITDA ratio of 60.00 times. Additionally, the stock has underperformed over the past year, generating a return of -11.50% compared to the market's positive return of 0.37%. In the broader market context, Viceroy Hotels' short-term performance has been notably better than the benchmark, as it gained 5.17% over the past week while the Sensex declined by 1.36%. However, the company's long-term growth prospects appear weak, with net sales growing at an annual rate of only 4.47% over the last five years. The lack of domestic mutual fund investment, which stands at 0%, may indicate a lack of confidence in the stock's valuation or business fundamentals. Overall, while recent price movements show a positive trend, the underlying financial health and market sentiment suggest caution.
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