Why is Viceroy Hotels falling/rising?
As of 13-Aug, Viceroy Hotels Ltd's stock price is Rs 105.20, down 1.5%, and has underperformed its sector by 5.68%. Weak long-term fundamentals and reduced institutional investor confidence contribute to its negative outlook despite a recent 1-month return of +7.57%.
As of 13-Aug, Viceroy Hotels Ltd is experiencing a decline in its stock price, currently at Rs 105.20, down by Rs 1.6 or 1.5%. Today's price summary indicates that the stock underperformed its sector by 5.68% and has fallen after two consecutive days of gains. Although it opened with a gain of 3.46% and reached an intraday high of Rs 110.5, the overall trend shows weakness, as the stock's weighted average price indicates more volume traded closer to its low price. The stock has had a mixed performance over various periods, with a 1-month return of +7.57% but a year-to-date decline of -14.12%. The company's weak long-term fundamentals, highlighted by a low Return on Capital Employed (ROCE) of 1.52% and a high Debt to EBITDA ratio of 60.00 times, contribute to its negative outlook. Additionally, institutional investors have reduced their stake, indicating a lack of confidence in the stock.In the broader market context, Viceroy Hotels' recent performance contrasts with the benchmark Sensex, which has shown a slight decline of only 0.01% over the past week. While the hotel, resort, and restaurant sector has gained by 4.05%, Viceroy's stock has underperformed significantly, reflecting broader concerns about its financial health and investor sentiment. The falling participation from institutional investors, who have decreased their stake by 0.6%, further suggests that the stock's fundamentals are not compelling enough to attract larger investors, which may be influencing its current price decline.
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