Key Events This Week
Feb 23: New 52-week high (Rs.79.09) and all-time high (Rs.78.9)
Feb 24: Further 52-week high at Rs.80.47 amid mixed market conditions
Feb 25-27: Consecutive declines with increasing selling pressure
Feb 27: Week closes at Rs.71.01 (-3.26%)
Strong Start: New Highs on 23 and 24 February
Tourism Finance Corporation of India Ltd began the week on a bullish note, surging 6.93% on 23 February to close at Rs.78.49, supported by a new 52-week high of Rs.79.09 and an all-time high intraday peak of Rs.78.9. This rally was underpinned by robust technical indicators, with the stock trading above all key moving averages (5-day through 200-day), signalling strong momentum. The day’s gain significantly outpaced the Sensex’s modest 0.39% rise, reflecting heightened investor interest and confidence.
On 24 February, the stock extended its gains, touching a fresh 52-week high of Rs.80.47 and closing with a modest 0.56% decline intraday but still maintaining elevated levels. Despite the broader market’s weakness, with the Sensex falling 0.78%, TFCI demonstrated resilience and outperformance within the finance sector. The stock’s valuation metrics, however, began to attract attention as its price-to-earnings ratio rose to 30.03, placing it in the "very expensive" category relative to historical averages and peers.
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Midweek Decline: Profit-Taking and Market Headwinds
Following the strong start, TFCI’s stock price reversed course on 25 February, declining 3.89% to Rs.75.01 amid reduced volumes and broader market volatility. The Sensex, however, rebounded 0.41% that day, indicating the stock’s underperformance relative to the benchmark. This pullback was exacerbated on 26 February, with the stock falling a further 4.32% to Rs.71.77, despite the Sensex’s modest 0.19% gain. The consecutive declines suggest profit-taking by investors after the rapid ascent earlier in the week.
On 27 February, the stock closed at Rs.71.01, down 1.06% on the day, while the Sensex dropped 1.16%. The sustained selling pressure over the last three sessions erased much of the week’s early gains, culminating in a net weekly loss of 3.26%. Trading volumes also tapered off, reflecting cautious investor sentiment amid elevated valuations and mixed market signals.
Daily Price Comparison: Stock vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.78.49 | +6.93% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.78.05 | -0.56% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.75.01 | -3.89% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.71.77 | -4.32% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.71.01 | -1.06% | 36,322.56 | -1.16% |
Valuation and Technical Analysis
Tourism Finance Corporation of India Ltd’s valuation metrics have shifted notably during the week. The price-to-earnings ratio rose to 30.03, placing the stock in the "very expensive" category, a step up from its previous "expensive" status. The price-to-book value ratio stands at 2.92, while enterprise value multiples such as EV/EBITDA (19.21) and EV/EBIT (19.25) further reflect the premium investors are willing to pay for the company’s growth prospects.
Despite the elevated valuation, the stock’s technical positioning remains robust, trading above all major moving averages (5-day, 20-day, 50-day, 100-day, and 200-day). However, the recent price correction suggests that the market is digesting these high multiples and recalibrating expectations accordingly.
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Key Takeaways
Positive Signals: The stock’s ability to reach new 52-week and all-time highs early in the week highlights strong underlying momentum and investor confidence. Its sustained trading above all key moving averages indicates a solid technical foundation. The recent upgrade in Mojo Grade from Sell to Hold and a Mojo Score of 50.0 reflect improving fundamentals and market sentiment.
Cautionary Signals: The sharp correction in the latter half of the week, with a 3.26% weekly decline, suggests profit-taking and sensitivity to elevated valuations. The P/E ratio at 30.03 and P/BV near 3 imply a premium that requires continued earnings growth to justify. The stock’s underperformance relative to the Sensex on several days indicates vulnerability amid broader market fluctuations.
Conclusion
Tourism Finance Corporation of India Ltd’s week was characterised by a strong start with record highs followed by a notable pullback, resulting in a net weekly decline of 3.26%. The stock’s early gains underscored its robust momentum and technical strength, while the subsequent correction reflected market caution around valuation levels and profit-taking. Despite the weekly setback, TFCI remains well-positioned above key moving averages and retains a Hold rating with a neutral Mojo Score, signalling a balanced outlook. Investors should monitor valuation trends and market conditions closely as the stock navigates this phase of consolidation.
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