T T Ltd Stock Falls to 52-Week Low of Rs.7.7 Amidst Continued Downtrend

Price Movement and Market Context

The stock’s new low of Rs.7.7 represents a sharp fall from its 52-week high of Rs.17, reflecting a year-long depreciation of 48.67%. This contrasts starkly with the Sensex, which has gained 7.68% over the same period. On the day of the decline, T T Ltd underperformed its sector by 4.52%, with a day change of -5.75%. The broader market also faced pressure, with the Sensex falling 443.59 points to 83,578.50, down 0.72%.

T T Ltd’s share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning underscores the stock’s weak trend relative to both its sector and the market.

Financial Performance and Fundamental Metrics

The company’s financial indicators reveal several areas of concern. Over the past five years, T T Ltd has experienced a compound annual growth rate (CAGR) decline of 19.43% in operating profits, highlighting a weakening earnings base. The latest quarterly net sales stood at Rs.45.67 crores, the lowest recorded in recent periods, while operating cash flow for the year was a mere Rs.0.31 crore, indicating limited cash generation capacity.

Debt metrics also point to financial strain. The company’s debt-to-equity ratio reached 2.60 times in the half-year period, while the debt-to-EBITDA ratio is elevated at 8.37 times, suggesting a challenging debt servicing environment. Return on Capital Employed (ROCE) averaged 6.92% historically, with the most recent figure at 3.6%, reflecting modest profitability relative to the capital invested.

Relative Performance and Market Position

Over the last three years, T T Ltd has consistently underperformed the BSE500 index, with negative returns over 3 years, 1 year, and 3 months. This sustained underperformance reflects challenges in both long-term growth and near-term results. The company’s Mojo Score stands at 23.0, with a Mojo Grade recently downgraded from Sell to Strong Sell as of 1 August 2025, indicating a deteriorated outlook based on MarketsMOJO’s comprehensive evaluation.

Despite these challenges, the stock’s valuation metrics suggest it is trading at a discount relative to its peers. The enterprise value to capital employed ratio is 1.4, which may be considered attractive in valuation terms. However, this is tempered by the company’s low profitability and high leverage.

Shareholding and Sectoral Context

The majority of T T Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. Operating within the Garments & Apparels sector, the company faces competitive pressures and market headwinds that have contributed to its subdued financial and share price performance.

Summary of Key Financial Indicators

The following metrics encapsulate the company’s recent financial health:

• Operating Profit CAGR (5 years): -19.43%


• Debt to EBITDA Ratio: 8.37 times


• Debt to Equity Ratio (Half Year): 2.60 times


• Return on Capital Employed (Average): 6.92%


• Operating Cash Flow (Year): Rs.0.31 crore


• Net Sales (Quarter): Rs.45.67 crore


• Mojo Score: 23.0 (Strong Sell)


• Market Cap Grade: 4

Market and Sector Comparison

While the Sensex remains within 3.09% of its 52-week high, T T Ltd’s share price has moved in the opposite direction, emphasising the stock’s relative weakness. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally positive market trend, which contrasts with T T Ltd’s position below all major moving averages.

In the context of the Garments & Apparels sector, T T Ltd’s performance is notably subdued, with the stock’s valuation and profitability metrics lagging behind sector averages.

Conclusion

T T Ltd’s fall to a 52-week low of Rs.7.7 reflects a combination of declining sales, constrained cash flows, elevated leverage, and subdued profitability. The stock’s technical indicators and fundamental scores point to ongoing challenges within the company’s financial and market performance. While valuation metrics indicate a discount relative to peers, the overall financial profile remains weak, as reflected in the recent downgrade to a Strong Sell rating by MarketsMOJO.

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