Microcap Garments Firm T T Faces Declining Performance Amid Weak Fundamentals

T T, a microcap player in the Garments & Apparels industry, is currently facing significant challenges as it approaches a 52-week low. The stock is just 1.69% away from its low of Rs 10.47, reflecting a concerning trend as it has underperformed its sector by 3.9% today. Over the past three days, T T has seen a consecutive decline, with returns dropping by 9.28%.
The company's long-term fundamentals appear weak, highlighted by a -15.61% CAGR growth in operating profits over the last five years. T T's ability to service its debt is also in question, with a high Debt to EBITDA ratio of 13.20 times. The Return on Capital Employed (ROCE) stands at a low 6.97%, indicating limited profitability per unit of capital.

In terms of recent performance, T T reported net sales of Rs 48.17 crore, a decline of 10.1% compared to the previous four-quarter average. The company's ROCE for the half-year is at its lowest, at 1.57%. Overall, T T's stock has generated a return of -9.02% over the past year, significantly lagging behind the Sensex, which has seen a 1.55% increase.