Why is Z F Steering falling/rising?
As of 05-Sep, Z F Steering Gear (India) Ltd is priced at 1,070.00, showing a slight increase but underperforming its sector and declining 27.21% year-to-date. Despite a strong ability to service debt, the company faces challenges with low ROCE and significant profit drops, leading to investor concerns.
As of 05-Sep, Z F Steering Gear (India) Ltd is currently priced at 1,070.00, reflecting a slight increase of 0.2 (0.02%). The stock has recently shown a trend reversal, gaining after two consecutive days of decline. However, it has underperformed its sector by 0.37% today. Over the past week, the stock has decreased by 0.97%, and it has experienced a significant decline of 27.21% year-to-date. Despite a low Debt to EBITDA ratio of 1.15 indicating a strong ability to service debt, the company has faced challenges with a low Return on Capital Employed (ROCE) of 3.18% and a substantial profit drop of 69.9% over the past year. Additionally, the stock is trading at a discount compared to its peers, but the negative results over the last four consecutive quarters have raised concerns among investors.Broader market context indicates that while the Sensex has gained 1.13% over the past week, Z F Steering has not kept pace, reflecting a broader trend of underperformance with a 37.06% decline over the past year compared to the market's negative return of 1.81%. The stock's liquidity remains adequate, with a notable increase in delivery volume, suggesting some rising investor participation. However, the lack of domestic mutual fund investment may signal a lack of confidence in the company's prospects, contributing to the stock's struggles in the market.
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