Recent Price Movement and Market Context
The stock has experienced a consecutive four-day decline, resulting in a cumulative loss of 13.09% over this period. Today's closing price of Rs.9.5 represents a new 52-week low, down from its peak of Rs.19.98 within the last year. This decline contrasts sharply with the broader market, where the Sensex gained 0.17% to close at 85,362.66, just 0.93% shy of its own 52-week high of 86,159.02. The Sensex's positive momentum is supported by mega-cap stocks trading above their 50-day and 200-day moving averages, signalling a bullish trend in the wider market.
Tirupati Sarjan's underperformance is further highlighted by its relative sector performance. The stock lagged the Realty sector by 2.46% today and is trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure.
Fundamental Performance and Financial Metrics
From a fundamental perspective, Tirupati Sarjan Ltd has faced headwinds over the past several years. The company’s long-term growth has been modest, with net sales increasing at an annualised rate of 14.47% over the last five years, while operating profit growth has been limited to 1.30% annually. The average Return on Capital Employed (ROCE) stands at 7.89%, reflecting weak capital efficiency relative to industry standards.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 4.31 times, signalling elevated leverage levels that could constrain financial flexibility. The company’s market capitalisation grade is rated 4, indicating a relatively small market cap within its peer group.
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Quarterly Results and Recent Earnings Trends
The company reported subdued quarterly results for September 2025, with net sales declining by 22.92% to Rs.37.83 crores. Profit before tax excluding other income (PBT less OI) reached a low of Rs.1.06 crores, while earnings per share (EPS) dropped to Rs.0.31, marking the lowest quarterly EPS in recent periods. These figures underscore the challenges faced in maintaining revenue and profitability momentum.
Long-Term and Relative Performance Analysis
Over the past year, Tirupati Sarjan Ltd has delivered a negative return of 47.03%, significantly underperforming the Sensex, which posted a positive return of 8.73% during the same timeframe. The stock has also lagged the BSE500 index over the last three years, one year, and three months, indicating persistent underperformance relative to broader market benchmarks.
Despite these challenges, the company’s valuation metrics suggest some degree of market discounting. The enterprise value to capital employed ratio stands at a low 0.6, which is considered very attractive compared to peers. Additionally, the company’s PEG ratio is 0.9, reflecting a modest relationship between price, earnings growth, and valuation. Profits have increased by 7.6% over the past year, indicating some improvement in earnings despite the stock’s price decline.
Shareholding Pattern and Market Sentiment
The majority of Tirupati Sarjan’s shares are held by non-institutional investors, which may influence trading dynamics and liquidity. The company’s Mojo Score is 17.0, with a Mojo Grade of Strong Sell as of 30 July 2025, an upgrade from the previous Sell rating. This grading reflects the company’s weak long-term fundamentals and recent financial performance.
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Summary of Key Financial and Market Indicators
Tirupati Sarjan Ltd’s current stock price of Rs.9.5 is well below all major moving averages, signalling a bearish technical setup. The stock’s 52-week high of Rs.19.98 contrasts starkly with its present valuation, reflecting a near 52.5% decline over the past year. The company’s financial metrics reveal modest sales growth but limited operating profit expansion, coupled with elevated leverage and constrained capital efficiency.
While the broader market and Realty sector have shown resilience, Tirupati Sarjan’s performance remains subdued, with a Strong Sell Mojo Grade underscoring the challenges faced. The company’s valuation ratios suggest the market has priced in much of the downside risk, with some metrics indicating a discounted valuation relative to peers.
Market Environment and Sectoral Context
In contrast to Tirupati Sarjan’s performance, the Sensex continues to trade near its 52-week highs, supported by mega-cap stocks and positive technical indicators. The Realty sector, while facing its own cyclical pressures, has outperformed Tirupati Sarjan, which remains an outlier in terms of price weakness and fundamental concerns.
Conclusion
The stock’s fall to a new 52-week low at Rs.9.5 reflects a combination of subdued financial results, weak long-term growth metrics, and technical underperformance. Despite some valuation appeal based on enterprise value and PEG ratios, the company’s elevated debt levels and limited profitability growth continue to weigh on investor sentiment. Tirupati Sarjan Ltd’s current market standing highlights the challenges faced within the micro-cap Realty segment amid a broader market environment that favours larger, more stable companies.
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