Tribhovandas Bhimji Zaveri Ltd Stock Hits 52-Week Low at Rs.146

Stock Price Movement and Market Context

The stock of Tribhovandas Bhimji Zaveri Ltd has been under pressure over the past year, registering a decline of 16.30%, in stark contrast to the Sensex’s positive return of 10.60% over the same period. Today’s fall to Rs.146 represents the lowest price level for the stock in the last 52 weeks, down from its high of Rs.232.75. Despite this, the stock outperformed its sector by 0.79% today and showed signs of a short-term trend reversal after gaining following three consecutive days of decline.

Technical indicators reveal that TBZ is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests sustained downward momentum in the stock price over multiple time frames.

Financial Performance Highlights

On the financial front, the company has demonstrated some positive results in recent quarters. Notably, TBZ reported a remarkable growth in net profit of 169.85% in the December 2025 quarter, marking two consecutive quarters of positive earnings. The company’s Return on Capital Employed (ROCE) for the half year stood at 12.59%, its highest level, while operating profit to interest coverage ratio reached 7.09 times, indicating a relatively comfortable buffer to meet interest obligations from operating earnings.

Operating profit to net sales ratio also improved to 12.36%, reflecting better operational efficiency. The company’s ROCE of 13 and an enterprise value to capital employed ratio of 1.2 suggest an attractive valuation compared to peers, with the stock trading at a discount to historical averages. Additionally, the company’s profits have risen by 101.6% over the past year, despite the stock’s negative price performance, resulting in a low PEG ratio of 0.1.

Debt and Profitability Concerns

Despite some encouraging profitability metrics, the company faces challenges in debt servicing. The Debt to EBITDA ratio stands at a high 4.24 times, indicating a relatively low ability to comfortably service debt from earnings before interest, taxes, depreciation, and amortisation. This elevated leverage level may weigh on the company’s financial flexibility.

Return on Equity (ROE) averaged 9.60%, which is modest and points to limited profitability generated per unit of shareholders’ funds. This figure suggests that while the company is generating profits, the returns to equity holders remain subdued relative to expectations for the sector.

Market Participation and Relative Performance

Another notable aspect is the absence of domestic mutual fund holdings in the company, with a reported 0% stake. Given that domestic mutual funds typically conduct thorough research and due diligence, their lack of exposure may reflect reservations about the company’s valuation or business prospects at current price levels.

Over the last year, the stock has significantly underperformed the broader market. While the BSE500 index has delivered returns of 14.64%, TBZ’s shares have declined by 16.30%, underscoring the stock’s relative weakness within the gems, jewellery and watches sector.

Broader Market Environment

The broader market environment remains positive, with the Sensex opening 142.71 points higher and currently trading at 82,515.48, just 4.42% below its 52-week high of 86,159.02. The Sensex is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, signalling a generally constructive medium-term trend. Mega-cap stocks are leading the market gains today, contributing to the overall positive sentiment.

Rating and Valuation Assessment

MarketsMOJO currently assigns Tribhovandas Bhimji Zaveri Ltd a Mojo Score of 51.0 and a Mojo Grade of Hold, upgraded from a previous Sell rating as of 12 January 2026. The company’s market capitalisation grade is 4, reflecting its mid-tier size within the sector. The Hold rating aligns with the mixed financial signals: strong profit growth and attractive valuation metrics balanced against leverage concerns and subdued equity returns.

The stock’s valuation remains appealing relative to peers, trading at a discount to historical averages. This is supported by the company’s ROCE and enterprise value to capital employed ratios, which suggest efficient capital utilisation and reasonable pricing from a fundamental perspective.

Summary of Key Metrics

To summarise, Tribhovandas Bhimji Zaveri Ltd’s key financial and market metrics include:

• 52-week low price: Rs.146
• 52-week high price: Rs.232.75
• One-year stock return: -16.30%
• Sensex one-year return: +10.60%
• Net profit growth (Dec 2025 quarter): +169.85%
• ROCE (half year): 12.59%
• Operating profit to interest coverage: 7.09 times
• Debt to EBITDA ratio: 4.24 times
• Return on Equity (average): 9.60%
• PEG ratio: 0.1

These figures illustrate a company with improving profitability and attractive valuation metrics, yet facing challenges related to leverage and market performance.

Conclusion

Tribhovandas Bhimji Zaveri Ltd’s recent fall to a 52-week low of Rs.146 highlights the stock’s ongoing struggles relative to the broader market and sector peers. While the company has delivered strong profit growth and maintains attractive valuation ratios, concerns around debt levels and modest returns on equity persist. The stock’s technical positioning below all major moving averages further underscores the current downward momentum. Market participation by institutional investors remains limited, reflecting cautious sentiment despite the company’s positive earnings trajectory.

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