Stock Performance and Market Context
The stock has been on a downward trajectory, falling for two consecutive sessions and delivering a cumulative return of -3.45% over this period. Today’s decline of 0.82% further underlines the recent weakness. Jay Shree Tea is currently trading below all key moving averages – the 5-day, 20-day, 50-day, 100-day, and 200-day – indicating sustained bearish momentum.
In comparison, the Sensex opened lower by 167.26 points but recovered to close marginally higher by 0.09% at 80,796.09 points. Despite the broader market’s resilience, the NIFTY FMCG index also hit a new 52-week low today, reflecting sector-wide pressures that have weighed on FMCG stocks including Jay Shree Tea.
While mega-cap stocks led the market recovery, Jay Shree Tea’s underperformance relative to its sector by 2.12% today highlights the challenges faced by mid-cap FMCG players in the current environment.
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Long-Term Performance and Valuation Metrics
Over the past year, Jay Shree Tea has recorded a negative return of -26.03%, significantly underperforming the Sensex, which posted a positive 4.25% return over the same period. The stock’s 52-week high was Rs.122.40, underscoring the extent of the recent decline.
The company’s valuation and financial health metrics have contributed to its current standing. The Mojo Score stands at 3.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating on 3 November 2025. The Market Cap Grade is 4, reflecting the company’s mid-cap status but also signalling caution.
Jay Shree Tea’s financial fundamentals reveal concerns. The average Return on Capital Employed (ROCE) is effectively zero, indicating limited efficiency in generating returns from capital invested. Operating profit has declined sharply, with a negative compound annual growth rate of -204.38% over the last five years. Additionally, the company’s Debt to EBITDA ratio is -1.00 times, highlighting challenges in servicing debt obligations.
Recent Financial Results
The latest financial results reinforce the cautious outlook. Operating cash flow for the year ended September 2025 was negative at Rs. -42.51 crores, marking the lowest level in recent periods. Profit After Tax (PAT) for the latest six months stood at Rs. 10.60 crores, reflecting a decline of -62.20%. Profit Before Tax (PBT) excluding other income for the quarter was Rs. 19.19 crores, down by -53.86% compared to prior periods.
These figures illustrate the pressures on profitability and cash generation, factors that have contributed to the stock’s recent price weakness.
Risk and Relative Performance
Jay Shree Tea’s stock is considered risky relative to its historical valuation averages. Despite the negative price returns of -26.03% over the past year, the company’s profits have increased by 305.6%, resulting in a PEG ratio of zero. This disparity suggests valuation complexities and market scepticism.
Furthermore, the stock has consistently underperformed the BSE500 benchmark over the last three years, reinforcing a pattern of relative weakness in comparison to broader market indices.
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Shareholding and Sectoral Position
The majority shareholding in Jay Shree Tea & Industries Ltd remains with the promoters, maintaining a stable ownership structure. The company operates within the FMCG sector, which has experienced mixed performance recently, with the NIFTY FMCG index also reaching a 52-week low today.
While the broader FMCG sector is generally regarded as defensive, Jay Shree Tea’s specific financial and valuation challenges have led to its relative underperformance within the sector.
Summary of Key Metrics
To summarise, Jay Shree Tea & Industries Ltd’s stock has declined to Rs.79.49, its lowest level in the past year. The stock’s performance contrasts with the broader market’s modest gains, and it remains below all major moving averages. Financial indicators such as ROCE, operating profit growth, and debt servicing capacity point to ongoing pressures. Recent quarterly and half-yearly results have shown declines in profitability and cash flow, contributing to the current market valuation and rating of Strong Sell by MarketsMOJO.
These factors collectively explain the stock’s current position at a 52-week low and its relative underperformance against benchmarks and sector peers.
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