TVS Supply Chain Solutions Gains 4.02%: Technical Shifts and Mixed Fundamentals Shape Week

Monday, 2 February 2026: Week Opens with Technical Upgrade

TVS Supply Chain Solutions Ltd began the week at Rs.96.70, a marginal increase of 0.05% from the previous Friday close of Rs.96.65. This modest gain came despite the Sensex declining 1.03% to 35,814.09, highlighting relative resilience. The key catalyst was MarketsMOJO’s upgrade of the stock’s rating from Strong Sell to Sell, driven by technical improvements amid persistent fundamental weaknesses. The company’s Mojo Score rose to 34.0, reflecting cautious optimism.

The upgrade was underpinned by a shift in technical indicators: while the MACD remained bearish weekly, the monthly RSI showed bullish tendencies, and the On-Balance Volume (OBV) turned mildly bullish weekly. These mixed signals suggested a potential easing of downward momentum, although short-term moving averages and the KST indicator remained bearish.

Tuesday, 3 February 2026: Mixed Technical Signals Amid Price Momentum Shift

The stock surged 3.50% to close at Rs.100.08, outperforming the Sensex’s 2.63% gain to 36,755.96. This price action reflected a tentative shift in momentum following the technical upgrade. However, the broader technical picture remained complex. The weekly MACD stayed bearish, and daily moving averages continued to signal weakness, while the monthly RSI remained bullish, indicating a possible medium-term recovery foundation.

Volume increased significantly to 52,186 shares, supporting the price rise. Despite this, the stock traded closer to its 52-week low of Rs.92.40 than its high of Rs.160.00, underscoring ongoing volatility. The sector’s challenges, including fluctuating fuel prices and regulatory pressures, continued to weigh on sentiment.

Wednesday, 4 February 2026: Continued Gains on Moderate Volume

The stock extended gains to Rs.102.55, up 2.47%, while the Sensex rose 0.37% to 36,890.21. Volume moderated to 43,835 shares. The price advance reflected sustained buying interest amid the mixed technical backdrop. Bollinger Bands remained mildly bearish, suggesting subdued volatility, while the OBV indicator’s mild bullishness hinted at accumulation. Despite these positives, the stock remained below key moving averages, indicating that short-term momentum was still fragile.

Thursday, 5 February 2026: Minor Pullback Amid Market Weakness

TVS Supply Chain Solutions Ltd retreated slightly to Rs.101.73, down 0.80%, as the Sensex declined 0.53% to 36,695.11. Volume dropped to 16,898 shares. This pullback reflected profit-taking after three consecutive days of gains and broader market weakness. Technical indicators such as the KST and daily moving averages remained bearish, reinforcing the cautious tone. The stock’s inability to sustain above Rs.102.55 suggested resistance at recent highs.

Friday, 6 February 2026: Week Closes with Modest Decline but Strong Weekly Gain

The week concluded with the stock closing at Rs.100.54, down 1.17% on the day but still delivering a 4.02% gain for the week. The Sensex edged up 0.10% to 36,730.20. Volume was 16,631 shares, reflecting typical end-of-week trading activity. The slight decline on Friday did not detract from the overall weekly outperformance versus the Sensex’s 1.51% rise. The stock’s price action encapsulated the week’s theme of mixed technical signals and cautious optimism amid fundamental challenges.

Key Takeaways

The week’s 4.02% gain for TVS Supply Chain Solutions Ltd notably outpaced the Sensex’s 1.51% rise, signalling relative strength amid a challenging sector backdrop. The technical upgrade from Strong Sell to Sell on 2 February marked a pivotal moment, reflecting a shift from strongly bearish to mildly bearish momentum. This was supported by mixed but cautiously optimistic technical indicators such as a bullish monthly RSI and mildly bullish weekly OBV, despite persistent bearish MACD and moving averages.

Volume trends corroborated the price action, with elevated activity on days of gains and subdued volumes during pullbacks. However, fundamental concerns remain, including weak long-term operating profit growth (-1.29% CAGR), low return on equity (3.86%), and a concerning EBIT to interest coverage ratio (0.84), indicating financial vulnerability. Elevated promoter share pledging at 31.87% adds further risk.

Valuation metrics present a mixed picture: while the stock trades at a discount with an enterprise value to capital employed ratio of 1.7 and a low PEG ratio of 0.1, the company’s recent profit growth contrasts with its share price underperformance over the past year. The stock’s 33.54% decline over 12 months versus a 5.37% Sensex gain highlights ongoing challenges.

Conclusion

TVS Supply Chain Solutions Ltd’s week was characterised by a cautious technical rebound amid persistent fundamental headwinds. The upgrade to a Sell rating reflects improved technical momentum but does not yet signal a full recovery. Investors should remain attentive to the company’s financial performance and sector developments, as the mixed technical signals and valuation discount offer both opportunities and risks. The stock’s outperformance relative to the Sensex this week is encouraging, yet the broader downtrend and financial concerns counsel prudence.

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