TVS Supply Chain Solutions Stock Hits All-Time Low Amidst Prolonged Downtrend

Market Performance and Price Movements

On 24 Nov 2025, TVS Supply Chain Solutions recorded a day’s decline of 6.10%, markedly underperforming the Sensex, which moved down by 0.41%. The stock touched an intraday low of ₹109.8, representing a 3.68% drop within the session. This level is just 2.32% above its 52-week low of ₹107.5, signalling proximity to historic lows.

Over the past week, the stock has declined by 12.25%, while the Sensex remained nearly flat with a marginal 0.08% change. The one-month trend shows a 16.11% reduction in the stock price, contrasting with a 0.79% gain in the Sensex. Extending the horizon, the three-month performance of TVS Supply Chain Solutions shows an 18.69% fall, whereas the benchmark index advanced by 4.39%.

Year-on-year, the stock has recorded a 40.04% decline, a stark contrast to the Sensex’s 7.28% rise. Year-to-date figures mirror this trend, with the stock down 39.98% against the Sensex’s 8.63% gain. Over longer periods, the stock has not shown appreciable growth, with zero returns over three, five, and ten years, while the Sensex has posted gains of 36.30%, 90.64%, and 229.30% respectively.

Technical Indicators and Moving Averages

TVS Supply Chain Solutions is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a persistent bearish trend with limited short-term recovery signals. The stock’s underperformance relative to its sector by 2.56% on the day further emphasises the pressure it faces within the transport services industry.

Financial Health and Profitability Metrics

Examining the company’s financial fundamentals reveals a subdued growth trajectory. Operating profits have shown a compound annual growth rate (CAGR) of -1.29% over the last five years, indicating a contraction in core earnings. The company’s ability to cover interest expenses is limited, with an average EBIT to interest ratio of 0.80, suggesting that earnings before interest and tax are insufficient to comfortably service debt obligations.

Return on Equity (ROE) averages at 3.86%, reflecting modest profitability relative to shareholders’ funds. This level of ROE is considered low within the transport services sector, where capital efficiency is a key performance indicator. Additionally, 29.23% of promoter shares are pledged, a factor that can exert additional downward pressure on the stock price during market declines.

Long-Term and Recent Performance Comparison

TVS Supply Chain Solutions has underperformed the broader BSE500 index across multiple time frames. The stock’s returns lag behind the index over the last three years, one year, and three months, highlighting persistent challenges in generating shareholder value. This underperformance is notable given the transport services sector’s overall resilience and growth prospects.

Recent Financial Highlights

Despite the downward trend in stock price, the company reported some positive financial results in the latest half-year period. Operating cash flow for the year reached ₹524.20 crores, the highest recorded, indicating strong cash generation capabilities. Profit after tax (PAT) for the latest six months was ₹148.79 crores, also reflecting an increase compared to previous periods. Return on Capital Employed (ROCE) for the half-year stood at 8.72%, the highest in recent times, suggesting improved utilisation of capital.

Valuation metrics show an enterprise value to capital employed ratio of 1.9, which is comparatively attractive within the sector. The company’s price-to-earnings-to-growth (PEG) ratio is 0.1, reflecting a disconnect between profit growth and stock price performance. Over the past year, profits have risen by 302%, contrasting with the 40.04% decline in share price, indicating that market valuation has not aligned with earnings growth.

Sector Context and Market Capitalisation

Operating within the transport services sector, TVS Supply Chain Solutions faces competitive pressures and market dynamics that have influenced its valuation. The company’s market capitalisation grade is rated at 3, indicating a mid-tier market cap relative to peers. The stock’s recent performance contrasts with the broader sector trends, where many companies have maintained or improved valuations amid evolving logistics demands.

Given the stock’s current position near historic lows and its trading below all key moving averages, the market assessment reflects a cautious stance. The sizeable proportion of pledged promoter shares adds an additional layer of complexity, as it may contribute to volatility in falling markets.

Summary of Key Metrics

To summarise, TVS Supply Chain Solutions has experienced a significant decline in share price, reaching an all-time low close to ₹107.5. The stock’s performance over multiple time frames has lagged behind benchmark indices and sector averages. Financial indicators reveal subdued profitability, limited debt servicing capacity, and a high level of pledged promoter shares. Despite some recent improvements in cash flow and profit metrics, the overall market valuation remains subdued.

Investors and market participants observing TVS Supply Chain Solutions will note the divergence between profit growth and share price movement, as well as the technical signals indicating sustained downward momentum.

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