Why is Victoria Mills falling/rising?
As of 10-Sep, Victoria Mills Ltd is priced at 6,902.85, showing a slight increase and positive short-term trends, but it has underperformed the sector today and has a year-to-date return of -7.95%. Despite recent gains and strong profit growth, concerns about long-term performance and fundamental strength remain.
As of 10-Sep, Victoria Mills Ltd is currently priced at 6,902.85, reflecting a slight increase of 7.9 (0.11%). The stock has shown a positive trend recently, gaining 6.2% over the last three days and opening today with a gain of 2.97%. It reached an intraday high of Rs 7,100 but also experienced a low of Rs 6,715. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a strong upward momentum. Additionally, the company has reported positive financial results over the last seven quarters, with significant growth in net sales and a remarkable increase in profit before tax. However, it has underperformed the sector today by 0.87%, and despite its recent gains, the stock has a year-to-date return of -7.95%.In the broader market context, Victoria Mills has outperformed the Sensex in the short term, with a 1-week return of +4.12% compared to the benchmark's +1.06%. Despite this, the stock has struggled over the past year, showing a decline of -23.31% while the Sensex has only decreased by -0.61%. The company's weak long-term fundamental strength, indicated by an average return on equity of 6.06% and a poor EBIT to interest ratio, raises concerns about its ability to sustain growth. While the stock is trading at a discount compared to its peers and has shown impressive profit growth, these factors are somewhat overshadowed by its long-term performance issues and overall market underperformance.
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