Recent Price Movement and Market Context
On 10 Dec 2025, Tirupati Foam opened sharply lower, registering a gap down of 5.00% from the previous close. The stock traded at Rs.74.73 throughout the day, touching this intraday low which now stands as its lowest price in the past year. This marks a continuation of a downward trend, with the stock posting a cumulative return of -9.84% over the last three trading sessions.
In comparison, the broader sector underperformed as well, with Tirupati Foam lagging the Furniture, Home Furnishing sector by 5.9% on the day. Despite the stock’s decline, the Sensex demonstrated resilience, closing at 84,947.52 points, up 0.33% and nearing its 52-week high of 86,159.02. The benchmark index’s positive momentum was supported by small-cap stocks, which gained 0.61% on the day.
Technical Indicators Reflect Bearish Sentiment
Tirupati Foam’s current trading levels are below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a prevailing bearish sentiment among market participants. The stock’s inability to sustain levels above these averages highlights the challenges it faces in regaining upward momentum.
Long-Term Performance and Valuation Metrics
Over the past year, Tirupati Foam’s stock price has declined by 42.40%, a stark contrast to the Sensex’s 4.22% gain during the same period. The stock’s 52-week high was Rs.136.45, indicating a significant retracement from its peak. This performance places Tirupati Foam among the underperformers within the BSE500 index over the last three years, one year, and three months.
From a valuation standpoint, the company presents an enterprise value to capital employed ratio of 1, which is considered attractive relative to its peers. Despite the price decline, the company’s profits have shown a modest rise of 6.8% over the past year. The price-to-earnings-to-growth (PEG) ratio stands at 2.3, reflecting the relationship between valuation and earnings growth.
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Financial Performance and Debt Profile
Tirupati Foam’s net sales for the quarter ending September 2025 stood at Rs.22.88 crores, marking the lowest quarterly sales figure in recent periods. Over the last five years, the company’s net sales have grown at an annual rate of 11.00%, while operating profit has remained relatively flat at 0.10% growth annually. This subdued growth trajectory has contributed to the stock’s performance challenges.
The company’s ability to service debt is constrained, with a Debt to EBITDA ratio of 5.07 times. This elevated leverage ratio indicates a higher debt burden relative to earnings before interest, taxes, depreciation, and amortisation, which may weigh on financial flexibility.
Return on Capital and Shareholding Structure
The average Return on Capital Employed (ROCE) for Tirupati Foam is 9.24%, reflecting moderate efficiency in generating returns from its capital base. While this figure is not indicative of strong long-term fundamental strength, it aligns with the company’s valuation metrics.
Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction and governance.
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Sector and Market Environment
The Furniture and Home Furnishing sector has faced mixed conditions, with Tirupati Foam’s performance diverging from broader market trends. While the Sensex trades near its 52-week high and small-cap stocks have shown gains, Tirupati Foam’s stock price has moved in the opposite direction. This divergence highlights sector-specific and company-specific factors influencing the stock’s trajectory.
Despite the current price levels, Tirupati Foam’s valuation remains discounted relative to historical averages of its peers, suggesting that the market is pricing in the company’s recent performance and financial metrics.
Summary of Key Price and Performance Metrics
The stock’s 52-week low of Rs.74.73 contrasts with its 52-week high of Rs.136.45, illustrating a significant range of price movement over the past year. The recent three-day decline of nearly 10% and the current trading below all major moving averages underscore the stock’s recent weakness.
In the context of the broader market, Tirupati Foam’s underperformance relative to the Sensex and its sector peers remains notable. The company’s financial indicators, including modest profit growth and elevated debt levels, provide context for the stock’s price behaviour.
Conclusion
Tirupati Foam’s fall to a 52-week low of Rs.74.73 reflects a combination of subdued sales growth, constrained profitability, and leverage considerations. While the broader market and sector have shown resilience, the stock’s technical and fundamental indicators have aligned to produce a sustained downtrend. Investors and market watchers will continue to monitor the company’s financial disclosures and market developments for further insights.
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