Why is Yasho Industries falling/rising?
As of 17-Sep, Yasho Industries Ltd is priced at 1,718.55, showing a slight increase but still trading below key moving averages. The company has faced significant challenges, including a 70% profit drop and a high Debt to EBITDA ratio, leading to negative sentiment and underperformance compared to the sector and benchmark indices.
As of 17-Sep, Yasho Industries Ltd is currently priced at 1,718.55, reflecting a slight increase of 3.2 (0.19%). The stock has recently gained after two consecutive days of decline, although it is still trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has underperformed the sector by 0.8%, and its year-to-date return stands at -12.52%. The company has a return on capital employed (ROCE) of 6.6, indicating fair valuation, but it has faced significant challenges, including a 70% drop in profits over the past year and a high Debt to EBITDA ratio of 3.67 times, which suggests a low ability to service debt. Additionally, domestic mutual funds hold only 1.55% of the company, indicating a lack of confidence in its current valuation or business prospects.Broader market context shows that Yasho Industries has consistently underperformed against the benchmark, with a one-year return of -13.29% compared to a -0.46% return for the Sensex. In the short term, the stock's performance has been negative, with a 3.79% decline over the past week, while the Sensex has gained 1.56%. This consistent underperformance, coupled with the company's flat results and declining profits, contributes to a negative sentiment surrounding the stock, despite a recent minor uptick in price.
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