Stock Performance and Market Context
Tirupati Sarjan’s share price has declined steadily over the past three trading sessions, registering a cumulative fall of 3.51%. The stock underperformed its sector by 2.32% on the day it hit the new low. This movement contrasts sharply with the broader market trend, where the Sensex advanced by 1.11% to close at 85,523.79, nearing its 52-week high of 85,801.70. The Sensex has been on a three-week consecutive rise, gaining 2.77% during this period, supported by mid-cap stocks which led the gains with a 1.12% increase in the BSE Mid Cap index.
Tirupati Sarjan’s current trading levels are below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained downward momentum. The stock’s 52-week high was Rs.21.62, highlighting the extent of the price correction over the past year.
Financial Metrics and Long-Term Trends
Over the last year, Tirupati Sarjan’s stock has generated a return of -27.70%, considerably lagging behind the Sensex’s 6.90% gain. This underperformance extends over a longer horizon, with the stock consistently trailing the BSE500 index in each of the past three annual periods.
Examining the company’s financial fundamentals reveals several areas of concern. The average Return on Capital Employed (ROCE) stands at 7.89%, reflecting modest capital efficiency. Net sales have shown a compound annual growth rate of 14.47% over the last five years, while operating profit has grown at a much slower rate of 1.30%, signalling limited expansion in profitability margins.
The company’s ability to service its debt is constrained, with a Debt to EBITDA ratio of 4.31 times, indicating a relatively high leverage position. This level of indebtedness may weigh on financial flexibility and increase risk exposure.
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
- - Complete fundamentals package
- - Technical momentum confirmed
- - Reasonable valuation entry
Recent Quarterly Results
The company’s latest quarterly results reflect a contraction in key metrics. Net sales for the quarter stood at Rs.37.83 crores, down by 22.92% compared to the previous period. Profit before tax excluding other income reached Rs.1.06 crores, marking the lowest level recorded in recent quarters. Earnings per share (EPS) also declined to Rs.0.31, the lowest quarterly figure reported.
Valuation and Peer Comparison
Despite the subdued price performance, Tirupati Sarjan’s valuation metrics suggest a relatively attractive entry point. The company’s ROCE of 7.5 and an enterprise value to capital employed ratio of 0.6 indicate that the stock is trading at a discount relative to its historical peer valuations. Over the past year, while the stock price has declined by 27.70%, profits have increased by 7.6%, resulting in a PEG ratio of 1.1.
The majority of the company’s shares are held by non-institutional investors, which may influence trading dynamics and liquidity considerations.
Is Tirupati Sarjan your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Summary of Key Concerns
The stock’s decline to Rs.11.2 represents a significant technical milestone, reflecting persistent downward pressure amid a rising market. The company’s financial indicators point to challenges in sustaining growth and profitability, with sales and earnings showing contraction in recent quarters. High leverage levels further compound the risk profile.
While valuation metrics suggest the stock is trading at a discount relative to peers, the consistent underperformance against benchmark indices over multiple years highlights the need for cautious evaluation.
Market Outlook and Sector Performance
The realty sector, in which Tirupati Sarjan operates, has experienced mixed performance in recent months. The broader market’s positive momentum, led by mid-cap stocks, contrasts with the stock’s subdued trajectory. The Sensex’s position above its 50-day and 200-day moving averages signals a bullish trend for the overall market, yet Tirupati Sarjan remains below all key moving averages, underscoring its relative weakness.
Investors and market participants may continue to monitor the stock’s price action and financial disclosures closely, given the divergence from sector and market trends.
Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →
