Terai Tea Co Faces Financial Challenges Amidst Significant Stock Volatility

Terai Tea Co, a microcap player in the FMCG sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 100. The stock has underperformed its sector by 3.48%, marking a consecutive decline over the past two days with a total drop of 6.02%. Despite opening with a gain of 3.56%, it reached an intraday high of Rs. 108.6 before falling back to its low.
In terms of moving averages, Terai Tea Co is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a bearish trend. Over the past year, the stock has declined by 26.55%, significantly underperforming the Sensex, which has seen a decrease of only 2.69%.

Financially, the company has reported weak long-term fundamentals, with a negative CAGR growth of -0.55% in operating profits over the last five years. Additionally, the company's ability to service its debt appears compromised, reflected in a poor EBIT to Interest ratio of -1.81. With a majority of shareholders being promoters, the company faces challenges in stabilizing its financial performance amidst these trends.