Stock Price Movement and Market Context
The stock of Tuni Textile Mills Ltd (Stock ID: 435250), operating in the Garments & Apparels sector, recorded a day change of -4.72%, underperforming its sector by 4.28% on 5 Feb 2026. The price decline to Rs.1.01 represents the lowest level in the past 52 weeks, down from its high of Rs.1.90. Over the last two trading days, the stock has lost 9.01% in value, reflecting sustained selling pressure.
Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish trend. This contrasts with the broader market, where the Sensex opened flat but traded down by 0.32% to 83,551.52 points, remaining 3.12% below its 52-week high of 86,159.02. The Sensex itself is positioned below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed market momentum.
Financial Performance and Valuation Metrics
Over the past year, Tuni Textile Mills Ltd has delivered a total return of -39.88%, significantly underperforming the Sensex’s 6.69% gain over the same period. The stock’s valuation metrics reveal a challenging financial profile. The company’s Return on Capital Employed (ROCE) stands at a modest 7.02% on average, with a recent half-year ROCE improving slightly to 8.69%. Despite this, the firm’s ability to service debt remains constrained, as evidenced by a high Debt to EBITDA ratio of 6.60 times.
Valuation ratios indicate an expensive positioning relative to capital employed, with an Enterprise Value to Capital Employed ratio of 2.1. However, the stock currently trades at a discount compared to its peers’ historical averages, reflecting market caution. Notably, the company’s profits have risen by 71% over the past year, with the latest six-month PAT reported at Rs.0.89 crore and quarterly net sales reaching a peak of Rs.44.67 crore.
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Rating and Market Sentiment
MarketsMOJO has assigned Tuni Textile Mills Ltd a Mojo Score of 28.0, categorising it as a Strong Sell as of 29 Jan 2026, an upgrade from its previous Sell rating. The company holds a Market Cap Grade of 4, indicating a relatively small market capitalisation within its sector. The downgrade in sentiment reflects concerns over the company’s long-term fundamental strength and financial health.
Despite the recent positive quarterly results, including three consecutive quarters of profit growth, the stock has consistently underperformed the BSE500 index over the last three years. This persistent underperformance is a key factor influencing the current market view.
Shareholding and Sector Position
The majority of Tuni Textile Mills Ltd’s shares are held by non-institutional investors, which may contribute to higher volatility in trading. The company operates within the Garments & Apparels sector, which has seen mixed performance in recent months, with some peers maintaining steadier valuations.
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Summary of Key Metrics
To summarise, Tuni Textile Mills Ltd’s stock has reached a 52-week low of Rs.1.01, reflecting a decline of nearly 47% from its 52-week high of Rs.1.90. The stock’s recent performance includes a 9.01% loss over two days and a year-to-date underperformance relative to its sector and benchmark indices. Financially, the company shows modest returns on capital and elevated leverage, with a Debt to EBITDA ratio of 6.60 times. Profit growth over the past year has been notable, yet this has not translated into improved market valuation or investor confidence.
While the company has reported positive results in recent quarters, the stock’s technical indicators and rating downgrade to Strong Sell by MarketsMOJO underscore the challenges faced in regaining upward momentum.
Market Environment and Broader Implications
The broader market environment remains cautious, with the Sensex trading below its 50-day moving average and showing a slight decline on the day. This environment, combined with the company’s specific financial and valuation metrics, has contributed to the stock’s current low price level. Investors and market participants continue to monitor the stock’s performance amid these conditions.
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