Team Lease Services Ltd is Rated Sell

Current Rating and Its Context

On 24 June 2025, MarketsMOJO revised the rating for Team Lease Services Ltd from 'Hold' to 'Sell', accompanied by a significant drop in the Mojo Score from 51 to 37. This score reflects a comprehensive assessment of the company's quality, valuation, financial trend, and technical outlook. The 'Sell' rating indicates that, based on current data, the stock is expected to underperform relative to the broader market and peers in the diversified commercial services sector.

Here’s How the Stock Looks Today

As of 11 January 2026, Team Lease Services Ltd continues to face challenges that justify the 'Sell' rating. The stock has delivered a disappointing 44.6% negative return over the past year, significantly underperforming the BSE500 benchmark. Shorter-term returns also reflect weakness, with declines of 1.38% on the day, 2.44% over the past week, and 13.8% over the last three months. This sustained underperformance highlights persistent headwinds for the company.

Quality Assessment

The quality grade for Team Lease Services Ltd is rated as average. Over the last five years, the company’s operating profit has grown at an annualised rate of just 9.17%, which is modest for a smallcap in the diversified commercial services sector. This growth rate suggests limited competitive advantage or operational leverage. Additionally, the company reported flat results in the September 2025 quarter, signalling a lack of momentum in earnings growth. Operating cash flow for the year stood at a low ₹104.38 crores, indicating constrained cash generation capacity.

Valuation Perspective

Despite the challenges, the valuation grade is considered attractive. The stock’s depressed price levels, reflecting the recent negative returns and cautious market sentiment, have brought valuations to a level that may appeal to value-oriented investors. However, attractive valuation alone does not offset concerns about the company’s growth prospects and financial health, which remain subdued.

Financial Trend Analysis

The financial trend grade is flat, indicating that the company’s financial performance has neither improved nor deteriorated significantly in recent periods. The flat trend is consistent with the reported flat quarterly results and the lack of meaningful operational progress. This stagnation in financial metrics suggests that the company is struggling to generate sustainable growth or improve profitability in the current market environment.

Technical Outlook

From a technical standpoint, the stock is rated bearish. The downward momentum reflected in the recent price declines and negative short- and medium-term returns signals weak investor sentiment. The technical grade reinforces the cautionary stance, as the stock has failed to establish a stable base or positive trend reversal, which would be necessary to support a more optimistic rating.

Implications for Investors

The 'Sell' rating from MarketsMOJO suggests that investors should approach Team Lease Services Ltd with caution. The combination of average quality, attractive valuation, flat financial trends, and bearish technicals indicates that the stock is likely to face continued pressure in the near term. Investors seeking capital preservation or growth may prefer to consider alternative opportunities within the diversified commercial services sector or broader market that demonstrate stronger fundamentals and momentum.

Sector and Market Context

Team Lease Services Ltd operates within the diversified commercial services sector, which has seen mixed performance amid evolving economic conditions. While some peers have managed to capitalise on sector tailwinds, Team Lease’s underperformance relative to the BSE500 index over one, three, and six-month periods highlights company-specific challenges. The smallcap status of the company also adds an element of volatility and risk, which investors should factor into their decision-making process.

Summary of Key Metrics as of 11 January 2026

The latest data shows the following key performance indicators for Team Lease Services Ltd:

• Mojo Score: 37.0 (Sell grade)


• 1-day return: -1.38%


• 1-week return: -2.44%


• 1-month return: -4.86%


• 3-month return: -13.80%


• 6-month return: -20.88%


• Year-to-date return: -1.08%


• 1-year return: -44.60%


• Operating cash flow (yearly): ₹104.38 crores (lowest level)


• Operating profit growth (5-year CAGR): 9.17%

These figures underscore the stock’s recent struggles and the rationale behind the current 'Sell' rating.

Investor Takeaway

For investors, the current 'Sell' rating on Team Lease Services Ltd serves as a cautionary signal. While the valuation may appear attractive, the lack of growth momentum, flat financial trends, and bearish technical indicators suggest that the stock is unlikely to provide favourable returns in the near term. Investors should carefully weigh these factors against their risk tolerance and investment horizon before considering exposure to this stock.

Continued monitoring of quarterly results and sector developments will be essential to reassess the company’s prospects and any potential changes in its rating.

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