Recent Price Movement and Market Context
The stock of TVS Supply Chain Solutions Ltd touched Rs.98.75 today, setting both a fresh 52-week and all-time low. This decline comes after a four-day consecutive fall, during which the stock has lost approximately 8.67% in returns. Despite this, the stock marginally outperformed its sector by 0.64% on the day of the new low.
Currently, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This technical positioning reflects the prevailing cautious sentiment surrounding the stock.
In comparison, the broader market benchmark, the Sensex, experienced a negative session, closing down by 342.01 points or 0.46% at 82,865.37. The Sensex remains close to its 52-week high, just 3.97% shy of the peak level of 86,159.02. However, it has been on a three-week losing streak, declining by 3.38% over that period.
Long-Term Performance and Relative Comparison
Over the past year, TVS Supply Chain Solutions Ltd has underperformed significantly, delivering a negative return of 39.58%, while the Sensex posted a positive return of 7.52% over the same timeframe. The stock’s 52-week high was Rs.167, highlighting the extent of the recent decline.
Moreover, the company’s performance has lagged behind the BSE500 index across multiple periods, including the last three years, one year, and three months, underscoring persistent challenges in maintaining competitive returns.
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Fundamental Metrics and Financial Health
The company’s long-term fundamental strength remains subdued, with a compound annual growth rate (CAGR) of operating profits at -1.29% over the last five years. This negative growth rate signals challenges in expanding core profitability.
Debt servicing capacity is another area of concern, with an average EBIT to interest ratio of 0.84, indicating that earnings before interest and tax are insufficient to comfortably cover interest expenses. This ratio is below the generally accepted threshold for financial stability.
Profitability metrics also reflect modest returns, with an average return on equity (ROE) of 3.86%, suggesting limited efficiency in generating profits from shareholders’ funds.
Adding to the pressure on the stock, 29.23% of promoter shares are pledged. In a declining market environment, such a high level of pledged shares can exert additional downward pressure on the share price due to potential forced selling or margin calls.
Recent Financial Highlights
Despite the stock’s price weakness, some recent financial indicators have shown improvement. The company reported its highest annual operating cash flow at Rs.524.20 crores in the latest fiscal year. Additionally, the return on capital employed (ROCE) for the half-year period reached a peak of 8.72%, while the debt-to-equity ratio improved to its lowest level of 1.14 times.
Valuation metrics suggest the stock is trading at an attractive level relative to its capital employed, with an enterprise value to capital employed ratio of 1.7. This valuation is below the average historical valuations of its peers in the transport services sector.
Profit growth over the past year has been notable, with a 302% increase, resulting in a price/earnings to growth (PEG) ratio of 0.1. However, this profit growth has not translated into positive stock returns, reflecting market caution.
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Market Sentiment and Analyst Ratings
TVS Supply Chain Solutions Ltd currently holds a Mojo Score of 29.0, categorised as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 5 January 2026, reflecting a deterioration in the company’s overall outlook. The market capitalisation grade stands at 3, indicating a relatively small market cap compared to larger peers.
The stock’s day change was recorded at -0.55% on the day it hit the 52-week low, underscoring ongoing selling pressure. The combination of weak long-term fundamentals, subdued profitability, and high promoter share pledging contributes to the cautious stance reflected in the rating.
While the broader transport services sector has seen mixed performance, TVS Supply Chain Solutions Ltd’s relative underperformance highlights the challenges it faces in regaining investor confidence.
Summary of Key Price and Performance Indicators
To summarise, the stock’s new low of Rs.98.75 represents a significant decline from its 52-week high of Rs.167. The stock’s negative return of 39.58% over the past year contrasts sharply with the Sensex’s positive 7.52% return. The sustained trading below all major moving averages and the four-day consecutive fall underline the current downward trend.
Financial metrics reveal a company grappling with modest profitability and constrained debt servicing ability, while recent cash flow and ROCE improvements offer some counterbalance. The high level of pledged promoter shares remains a notable factor in the stock’s price pressure.
Overall, the stock’s performance and valuation reflect a complex interplay of market conditions and company-specific factors that have culminated in the recent 52-week low.
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