TCFC Finance Faces Volatility Amidst Weak Fundamentals and Recent Profit Growth

TCFC Finance, a microcap player in the Non-Banking Financial Company (NBFC) sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 42.3. This marks a notable decline of 10.53% from its intraday high, contributing to an underperformance of 2.88% against its sector peers. The stock has consistently traded below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downward trend.
Over the past year, TCFC Finance has faced challenges, with a staggering return of -36.55%, contrasting sharply with the Sensex's modest gain of 0.26%. The company's long-term fundamentals appear weak, highlighted by an average Return on Equity (ROE) of just 6.93% and a concerning annual decline in net sales of -8.35%. Additionally, the stock's valuation remains high relative to its peers, with a Price to Book Value ratio of 0.4.

Despite these challenges, TCFC Finance reported positive results for June 2025, showcasing a significant growth in profit after three consecutive quarters of losses. The company's PAT for the quarter reached Rs. 1.74 crore, reflecting a remarkable growth of 470.5% compared to the previous four-quarter average.