TVS Supply Chain Solutions Ltd Falls 6.30%: Key Technical and Fundamental Challenges Weigh

5 January 2026: Bearish Momentum Amid Mixed Technical Signals

TVS Supply Chain Solutions Ltd opened the week with a share price of Rs.112.50, down 1.57% from the previous close of Rs.114.30. Despite a marginal intraday uptick of 0.04% from the prior day’s close, the stock faced increasing bearish momentum. Technical indicators painted a mixed picture: while monthly Relative Strength Index (RSI) suggested some longer-term bullishness, weekly and daily moving averages remained firmly bearish. The Moving Average Convergence Divergence (MACD) on the weekly chart was negative, reinforcing the downward trend. The stock’s 52-week range between Rs.100.25 and Rs.180.90 highlighted its volatility, but the prevailing technical signals indicated sustained selling pressure.

6 January 2026: Downgrade to Strong Sell Reflects Fundamental and Technical Weakness

On 6 January, TVS Supply Chain Solutions Ltd’s share price declined further to Rs.111.65, a 0.76% drop from the previous day. This followed MarketsMOJO’s downgrade of the stock from a Sell to a Strong Sell rating, citing deteriorating fundamentals and bearish technicals. The company’s long-term operating profit CAGR was negative at -1.29%, with a modest average Return on Equity (ROE) of 3.86% and a concerning EBIT to interest coverage ratio of 0.84, signalling financial strain. Additionally, promoter share pledging stood at 29.23%, raising concerns about potential forced selling in volatile markets. Despite an attractive valuation with a low Price/Earnings to Growth (PEG) ratio of 0.1 and a half-year ROCE of 8.72%, the downgrade underscored the market’s scepticism about sustainable growth prospects.

7 January 2026: Brief Recovery Amid Market Stability

The stock rebounded modestly on 7 January, closing at Rs.113.05, up 1.25% from the previous day. This uptick coincided with a near-flat Sensex movement (+0.03%), suggesting some short-term relief. However, technical indicators remained cautious. The weekly MACD and Bollinger Bands continued to signal bearish momentum, and daily moving averages were still trending downwards. Volume levels increased to 22,513 shares, indicating some buying interest, but the overall trend remained fragile.

8 January 2026: Sharp Decline Amid Broader Market Weakness

On 8 January, TVS Supply Chain Solutions Ltd experienced a sharp decline of 3.32%, closing at Rs.109.30. This drop was more pronounced than the Sensex’s 1.41% fall, reflecting heightened selling pressure on the stock. The decline aligned with worsening technical signals, including bearish weekly Bollinger Bands and a negative Know Sure Thing (KST) oscillator. The On-Balance Volume (OBV) indicator also showed mild bearishness on the monthly chart, suggesting volume trends did not support a sustained recovery. The stock’s vulnerability was further underscored by the broader market’s weakness, which saw the Sensex fall below 37,200 points.

9 January 2026: Week Closes Lower Amid Continued Downtrend

The week concluded on 9 January with the stock closing at Rs.107.10, down 2.01% on the day and 6.30% for the week. The Sensex also declined by 0.89%, closing at 36,807.62. Despite some monthly RSI bullishness, the weekly and daily technical indicators remained bearish, with moving averages sloping downwards and MACD lines below signal lines. The stock’s underperformance relative to the Sensex (-3.68% differential) highlighted the persistent challenges facing TVS Supply Chain Solutions Ltd. Trading volumes were subdued at 9,737 shares, reflecting cautious investor sentiment amid the downgrade and fundamental concerns.

Daily Price Performance vs Sensex

Key Takeaways

Negative Technical Momentum: The stock’s technical indicators, including weekly MACD, daily moving averages, and Bollinger Bands, consistently signalled bearish momentum throughout the week, contributing to sustained selling pressure.

Fundamental Weaknesses: Weak long-term profitability, low ROE, and high promoter share pledging underpin the downgrade to Strong Sell, highlighting elevated risks for investors.

Valuation Discount: Despite fundamental challenges, the stock trades at an attractive valuation with a low PEG ratio and reasonable ROCE, which may appeal to value-focused investors willing to tolerate risk.

Underperformance vs Sensex: The stock’s 6.30% weekly decline significantly outpaced the Sensex’s 2.62% fall, reflecting company-specific headwinds beyond broader market weakness.

Volume Trends: Mixed volume signals, with mild bullishness on weekly OBV but bearish monthly trends, suggest cautious investor participation amid uncertainty.

Conclusion

TVS Supply Chain Solutions Ltd’s performance in the week ending 9 January 2026 was marked by a clear deterioration in technical momentum and a significant downgrade to Strong Sell by MarketsMOJO. The stock’s 6.30% decline outpaced the broader market’s fall, reflecting persistent fundamental weaknesses and cautious investor sentiment. While valuation metrics offer some appeal, the combination of weak profitability, high promoter pledge levels, and bearish technical indicators suggests elevated risk. Investors should remain cautious and monitor for any signs of stabilisation in technical and fundamental indicators before considering exposure to this stock.

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