Stock Performance Overview
On the day of reporting, TVS Supply Chain Solutions Ltd’s stock price dropped by 2.98%, underperforming the Sensex which declined by 0.91%. The stock touched an intraday low of ₹95.4, just 0.1% above its 52-week low of ₹95.3, signalling a fresh record low in its trading history. The stock has consistently traded below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained bearish momentum.
Comparing recent performance, the stock has underperformed its sector by 0.93% on the day and has shown a steep decline over multiple time frames. Over the past week, it fell 8.43% against the Sensex’s 2.41% drop. The one-month and three-month declines are even more pronounced at 12.49% and 26.88% respectively, compared to Sensex’s 4.64% and 3.55% losses. The year-to-date performance shows a 15.32% decrease, while the stock’s one-year return stands at a negative 39.95%, contrasting sharply with the Sensex’s positive 6.58% gain.
Longer-term figures reveal a stagnant three-year and five-year return of 0.00%, while the Sensex has delivered 33.83% and 66.86% gains over the same periods. The ten-year performance remains flat for the stock, whereas the Sensex surged by 233.76%.
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Financial Metrics and Fundamental Assessment
TVS Supply Chain Solutions Ltd’s financial indicators reveal areas of concern that have contributed to the stock’s decline. The company’s long-term fundamental strength is weak, with a compound annual growth rate (CAGR) of operating profits at -1.29% over the last five years. This negative growth rate highlights challenges in sustaining profitability.
Debt servicing capacity is limited, as reflected by 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 of 1.5 to 2.0 for healthy debt coverage.
Profitability per unit of shareholders’ funds is also modest, with an average return on equity (ROE) of 3.86%. This figure suggests limited efficiency in generating returns from equity capital.
Institutional Investor Activity
Institutional investors have reduced their holdings by 0.85% in the previous quarter, now collectively owning 4.93% of the company’s shares. Given their analytical resources and market insight, this decline in institutional participation may reflect cautious sentiment regarding the company’s outlook.
Relative Performance Within the Market
TVS Supply Chain Solutions Ltd has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This underperformance relative to a broad market benchmark underscores the stock’s challenges in delivering shareholder value.
Positive Financial Highlights
Despite the overall subdued performance, certain financial metrics have shown improvement. The company reported its highest annual operating cash flow at ₹524.20 crores in the latest fiscal year. 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 a low of 1.14 times, indicating a more balanced capital structure.
Valuation metrics also suggest the stock is trading at a discount compared to its peers’ historical averages. The ROCE of 4.3 and an enterprise value to capital employed ratio of 1.7 point to an attractive valuation on paper. Furthermore, the company’s profits have risen by 302% over the past year, despite the stock’s 39.95% decline, resulting in a low PEG ratio of 0.1.
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Mojo Score and Market Capitalisation Grade
The company’s Mojo Score currently stands at 29.0, categorised as a Strong Sell, an upgrade from the previous Sell rating on 5 Jan 2026. This score reflects the aggregated assessment of the company’s financial health, market performance, and valuation metrics. The market capitalisation grade is rated at 3, indicating a relatively modest market size within the transport services sector.
Sector Context and Comparative Analysis
Operating within the transport services sector, TVS Supply Chain Solutions Ltd’s recent underperformance contrasts with broader sector trends. The sector has generally shown more resilience, with many peers maintaining or improving valuations. The stock’s persistent decline and trading below all key moving averages highlight its divergence from sector momentum.
Summary of Key Challenges
The stock’s all-time low reflects a combination of weak long-term profit growth, limited debt servicing ability, and low returns on equity. The reduction in institutional investor participation further emphasises the cautious stance towards the company. While certain financial indicators such as operating cash flow and ROCE have improved, these have not translated into positive market performance.
Conclusion
TVS Supply Chain Solutions Ltd’s stock has reached a historic low, underscoring the challenges faced by the company in recent years. The comprehensive data points to a difficult market environment and fundamental pressures that have weighed on the stock’s valuation and investor confidence.
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