Why is Vikram Kamats falling/rising?
As of 01-Aug, Vikram Kamats Hospitality Ltd's stock price is Rs 59.78, up 4.15% recently, but it has declined 21.13% over the past year, indicating weak fundamentals and low investor interest. Despite short-term gains, the company's long-term growth prospects remain challenging compared to the broader market.
As of 01-Aug, Vikram Kamats Hospitality Ltd's stock price is currently at Rs 59.78, reflecting an increase of Rs 2.38, or 4.15%. The stock has been gaining over the last two days, with a total return of 7.71% during this period. However, despite this recent uptick, the stock has underperformed in the longer term, showing a decline of 21.13% over the past year. The company's return on capital employed (ROCE) is low at 2.2, and its profits have decreased significantly by 61.5% over the last year, indicating weak fundamental strength. Additionally, the stock is trading at a discount compared to its peers, but the falling investor participation, with a drastic drop in delivery volume, raises concerns about its liquidity and market interest.In the broader market context, the stock has outperformed the Sensex by 4.14% today, while the Sensex itself has declined by 1.06% over the past week. Despite this short-term outperformance, Vikram Kamats has shown a negative return of 20.29% year-to-date, contrasting sharply with the Sensex's positive return of 3.15% in the same timeframe. The company's weak long-term growth prospects, highlighted by a high debt-to-EBITDA ratio and flat operating profits, suggest that while there may be short-term gains, the overall outlook remains challenging compared to the broader market trends.
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