Jay Shree Tea & Industries Ltd Falls to 52-Week Low of Rs.80

Stock Price Movement and Market Context

On 1 Feb 2026, Jay Shree Tea & Industries Ltd’s share price declined by 2.95%, hitting an intraday low of Rs.80. This new 52-week low contrasts sharply with its 52-week high of Rs.122.40, underscoring a substantial depreciation of nearly 34.7% from its peak. The stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

The broader FMCG sector, particularly the Tea/Coffee segment, also experienced declines, with the sector falling by 3.43% on the same day. The NIFTY FMCG index itself hit a new 52-week low, reflecting sector-wide challenges. Meanwhile, the Sensex reversed sharply after a positive opening, dropping 1,666.03 points or 1.88% to trade at 80,722.94, adding to the negative market sentiment.

Comparative Performance Over One Year

Jay Shree Tea’s one-year performance has been notably weak, with the stock declining by 22.41%. This contrasts with the Sensex’s positive return of 5.16% over the same period, highlighting the stock’s underperformance relative to the broader market. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in maintaining competitive growth and investor confidence.

Financial Metrics and Fundamental Analysis

Jay Shree Tea & Industries Ltd’s financial fundamentals have shown signs of strain. The company’s long-term Return on Capital Employed (ROCE) averages at 0%, indicating limited efficiency in generating returns from its capital base. Operating profit has deteriorated sharply, with a negative compound annual growth rate of -204.38% over the past five years, reflecting significant contraction in core profitability.

Debt servicing capacity is also a concern, with a Debt to EBITDA ratio of -1.00 times, suggesting the company is carrying a debt burden that is not adequately supported by earnings before interest, taxes, depreciation, and amortisation. This ratio points to potential liquidity pressures and heightened financial risk.

Recent Quarterly and Half-Yearly Results

The latest financial results reinforce the challenging environment for Jay Shree Tea. Operating cash flow for the fiscal year was reported at a low of Rs. -42.51 crores, indicating cash outflows from core business activities. Profit After Tax (PAT) for the latest six months stood at Rs.10.60 crores but declined by 62.20% compared to the previous period. Similarly, Profit Before Tax excluding other income (PBT less OI) for the recent quarter was Rs.19.19 crores, down 53.86%, signalling weakening profitability in the near term.

Valuation and Risk Considerations

The stock’s valuation metrics suggest elevated risk levels. Despite the negative return of 22.41% over the past year, the company’s profits have increased by 305.6%, resulting in a PEG ratio of 0. This disparity indicates a disconnect between earnings growth and share price performance, which may reflect market concerns about sustainability and quality of earnings.

Jay Shree Tea is rated with a Mojo Score of 3.0 and a Mojo Grade of Strong Sell as of 3 Nov 2025, downgraded from a Sell rating. The Market Cap Grade stands at 4, reflecting its relative size and market capitalisation within the FMCG sector. These ratings underscore the cautious stance adopted by rating agencies based on the company’s financial and operational metrics.

Sector and Market Dynamics

The Tea and Coffee sector has faced headwinds, with the NIFTY FMCG index hitting a 52-week low alongside Jay Shree Tea’s decline. The Sensex’s failure to sustain gains and its trading below the 50-day moving average, despite the 50DMA remaining above the 200DMA, indicates a mixed technical picture for the broader market. These factors contribute to the subdued sentiment impacting Jay Shree Tea’s stock price.

Shareholding Pattern

The majority shareholding remains with the promoters, which can influence strategic decisions and company direction. However, the current market valuation and financial performance suggest that the company is navigating a challenging phase with limited near-term momentum.

Summary of Key Concerns

Jay Shree Tea & Industries Ltd’s fall to Rs.80 represents a culmination of several factors: subdued financial performance, declining profitability, high leverage, and sectoral pressures. The stock’s trading below all major moving averages and its underperformance relative to the Sensex and FMCG indices highlight the challenges faced by the company in regaining investor confidence.

While the company’s promoters maintain majority ownership, the current market environment and financial metrics suggest a cautious outlook. The downgrade to a Strong Sell rating by MarketsMOJO reflects these concerns, emphasising the need for careful monitoring of the company’s financial trajectory and market developments.

Technical and Market Indicators

The technical indicators reinforce the bearish trend. Jay Shree Tea’s share price remains below its short, medium, and long-term moving averages, signalling persistent selling pressure. The broader market’s volatility, as seen in the Sensex’s sharp reversal and the FMCG sector’s decline, adds to the headwinds facing the stock.

Conclusion

Jay Shree Tea & Industries Ltd’s new 52-week low of Rs.80 marks a significant milestone in its recent share price journey. The combination of weak financial metrics, sectoral downturns, and market volatility has contributed to this decline. The company’s current ratings and financial ratios reflect the challenges it faces in stabilising its performance and valuation in the near term.

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