The stock has recorded a consecutive fall spanning eight days, resulting in a cumulative return of -10.31% during this period. Today's decline of 2.52% places Transworld Shipping Lines notably below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent weakness in price momentum.
In contrast, the broader market has exhibited strength. The Sensex opened 284.45 points higher and further climbed 246.15 points to close at 85,717.07, representing a 0.62% gain. This index is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, reflecting a bullish trend. Mega-cap stocks have been the primary drivers of this market advance.
Over the last year, Transworld Shipping Lines has underperformed significantly, with a total return of -42.17%, compared to the Sensex's positive return of 10.49%. The stock's 52-week high was Rs.493, underscoring the extent of the decline to the current low of Rs.220.
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Examining the company’s financial metrics reveals several factors contributing to the current price level. The net sales for the most recent quarter stood at Rs.98.09 crore, reflecting a decline of 12.3% compared to the average of the previous four quarters. Profit before depreciation, interest and taxes (PBDIT) for the quarter was Rs.15.66 crore, the lowest recorded in recent periods. Additionally, the operating profit to interest ratio for the quarter was 2.67 times, indicating tighter coverage of interest expenses.
Long-term growth trends also show subdued performance. The compound annual growth rate (CAGR) of net sales over the past five years is negative at -5.55%, highlighting challenges in expanding revenue. The company’s return on capital employed (ROCE) is 2.4%, which is modest but accompanied by an enterprise value to capital employed ratio of 0.7, suggesting the stock is trading at a valuation discount relative to its capital base.
Transworld Shipping Lines has consistently underperformed its benchmark indices over the last three years, including the BSE500. Profitability has also contracted, with profits falling by 50.2% over the past year. These financial indicators align with the stock’s downward trajectory and its current valuation levels.
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The stock’s performance contrasts sharply with the broader transport services sector, which has not mirrored such declines. Today, Transworld Shipping Lines underperformed its sector by 2.42%, further emphasising its relative weakness. The majority shareholding remains with promoters, maintaining a stable ownership structure despite the price pressures.
While the Sensex and mega-cap stocks continue to demonstrate resilience and upward momentum, Transworld Shipping Lines remains in a challenging position, reflected in its trading below all major moving averages and its recent 52-week low price point. The stock’s valuation metrics indicate it is priced at a discount compared to peers, but this is accompanied by subdued financial performance and declining profitability over recent periods.
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