Why is Terai Tea Co falling/rising?

Jul 02 2025 09:34 PM IST
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As of 02-Jul, Terai Tea Co Ltd's stock price has increased to Rs 147.50, up 5.21% today, but it has underperformed over the longer term with a 1-month decline of 17.83% and significant operating losses. Despite a strong annual return of 38.24%, the stock's weak fundamentals and declining sales raise concerns about its sustainability.
As of 02-Jul, Terai Tea Co Ltd is experiencing a price increase, currently at Rs 147.50, reflecting a rise of Rs 7.3 or 5.21%. The stock has shown a positive performance today, outperforming its sector by 5.03% and gaining 6.5% over the last two days. It opened with a gain of 4.85% and reached an intraday high of Rs 147.55. However, despite this short-term gain, the stock has underperformed in the longer term, with a 1-month decline of 17.83% and a year-to-date drop of 12.72%. The company's financial health is concerning, as it has reported significant operating losses, with net sales falling by 43.3% and a negative profit after tax of Rs -4.97 crore, which contributes to a weak long-term fundamental strength.

In the broader market context, while Terai Tea Co has generated a return of 38.24% over the past year, this is significantly higher than the benchmark Sensex's return of 5.00% in the same period. However, the stock's recent performance contrasts sharply with its longer-term trends, as it has been trading below its moving averages and experiencing declining investor participation, with a 21.35% drop in delivery volume. This juxtaposition of short-term gains against a backdrop of weak financial fundamentals and declining sales suggests that while the stock may be rising in the immediate term, underlying issues could pose risks for sustained performance.
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