Tuni Textile Mills Faces Increased Challenges Amid Declining Sales and Performance Metrics

Tuni Textile Mills, a microcap player in the Garments & Apparels industry, has recently undergone an adjustment in its evaluation score. This revision reflects a shift in technical trends, moving from a mildly bearish stance to a more pronounced bearish outlook.
Key financial metrics indicate a challenging landscape for the company. The latest quarterly net sales reported at Rs 16.97 crore show a decline of 20.5% compared to the previous four-quarter average. Additionally, Tuni Textile Mills has demonstrated consistent underperformance against benchmark indices over the past three years, with a return of -27.60% in the last year alone.

The company's long-term fundamentals also raise concerns, highlighted by an average Return on Capital Employed (ROCE) of 5.46% and a high Debt to EBITDA ratio of 6.86 times, suggesting limited capacity to service its debt obligations. Despite these challenges, the stock is trading at a discount relative to its peers' average historical valuations, with a PEG ratio of 0.2 indicating a potentially attractive valuation.

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