Why is Tarsons Products falling/rising?
As of 17-Sep, Tarsons Products Ltd is priced at 315.15, with a recent increase but significant long-term underperformance, including a 1-month return of -8.40% and a year-to-date decline of -22.07%. The company has strong debt servicing ability but faces challenges like low management efficiency and declining operating profit, alongside decreasing institutional investor participation.
As of 17-Sep, Tarsons Products Ltd is currently priced at 315.15, reflecting an increase of 1.2 (0.38%). The stock has shown a consecutive gain over the last two days, rising by 1.01% during this period. However, despite this recent uptick, the stock has underperformed significantly over the longer term, with a 1-month return of -8.40% and a year-to-date decline of -22.07%. The company's ability to service its debt remains strong, indicated by a healthy EBIT to Interest ratio of 12.54. Nonetheless, it faces challenges such as poor management efficiency, evidenced by a low Return on Capital Employed (ROCE) of 8.12%, and a concerning trend of declining operating profit over the past five years. Additionally, institutional investor participation has decreased, which may signal a lack of confidence in the stock's future performance.In the broader market context, the stock's short-term performance has lagged behind the benchmark, with the Sensex showing a 1-week gain of +1.56% compared to Tarsons' modest increase of +0.08%. This underperformance is consistent with the stock's historical trend, where it has generated -33.53% returns over the past year, contrasting sharply with the Sensex's slight decline of -0.46% during the same period. The falling participation from institutional investors, who typically have more resources to analyze company fundamentals, further exacerbates concerns about the stock's long-term viability and growth potential.
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