Stock Performance and Market Context
On 12 Jan 2026, Jay Shree Tea & Industries Ltd’s share price touched an intraday low of Rs.81.52, representing a decline of 2.51% on the day. The stock opened with a gap down of 2.51% and has been on a downward trajectory for three consecutive sessions, losing 5.01% over this period. This underperformance contrasts with the broader FMCG sector, where the stock lagged by 1.97% today.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. In comparison, the Sensex opened lower at 83,435.31 points, down 0.17%, and is trading marginally below its 50-day moving average but remains 3.11% shy of its 52-week high of 86,159.02.
Jay Shree Tea’s 52-week high stands at Rs.122.40, highlighting the extent of the recent decline. Over the past year, the stock has delivered a negative return of 22.34%, significantly underperforming the Sensex’s positive 8.01% gain during the same period.
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Financial Metrics and Fundamental Assessment
Jay Shree Tea & Industries Ltd’s financial indicators reveal areas of concern that have contributed to the stock’s subdued performance. The company’s long-term fundamental strength is weak, reflected in an average Return on Capital Employed (ROCE) of 0%. This metric indicates limited efficiency in generating returns from capital investments over time.
Operating profit growth has been negative, with an annualised decline of 204.38% over the last five years. This steep contraction in operating profitability underscores the company’s challenges in sustaining earnings growth. Additionally, the company’s debt servicing capacity is constrained, as evidenced by a high Debt to EBITDA ratio of -1.00 times, signalling elevated leverage relative to earnings before interest, tax, depreciation, and amortisation.
The latest quarterly results for September 2025 further illustrate the financial strain. Operating cash flow for the year was negative at Rs. -42.51 crores, while Profit Before Tax excluding other income fell by 53.86% to Rs.19.19 crores. Net profit after tax also declined by 46.4% to Rs.19.58 crores, indicating a contraction in profitability on a quarterly basis.
Valuation and Risk Profile
The stock’s valuation metrics suggest elevated risk relative to historical averages. Despite a 305.6% increase in profits over the past year, the stock has generated a negative return of 22.34%, resulting in a PEG ratio of zero. This disparity points to valuation concerns and market scepticism regarding the sustainability of profit growth.
Jay Shree Tea has consistently underperformed the BSE500 benchmark over the last three years, with negative returns in each annual period. This persistent underperformance highlights the stock’s challenges in delivering shareholder value relative to broader market indices.
The company’s majority shareholding remains with promoters, which may influence strategic decisions and capital allocation going forward.
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Summary of Market and Stock Dynamics
Jay Shree Tea & Industries Ltd’s recent decline to Rs.81.52 marks a significant technical low within a broader context of financial underperformance and valuation pressures. The stock’s fall contrasts with the Sensex’s relative stability, which remains close to its 52-week high despite minor intraday fluctuations.
The company’s financial results, including negative operating cash flows and declining profitability, have weighed on investor sentiment. The stock’s position below all major moving averages further emphasises the prevailing downward momentum.
While the FMCG sector continues to face competitive and market headwinds, Jay Shree Tea’s specific financial metrics and valuation profile have contributed to its current standing as a strong sell according to the Mojo Grade, which was downgraded from Sell to Strong Sell on 3 Nov 2025. The company holds a Mojo Score of 3.0 and a Market Cap Grade of 4, reflecting its market capitalisation relative to peers.
Overall, the stock’s performance over the past year and its current technical position underscore the challenges faced by Jay Shree Tea & Industries Ltd in regaining upward momentum within the FMCG sector.
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