Why is Terai Tea Co falling/rising?

Aug 19 2025 09:47 PM IST
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As of 19-Aug, Terai Tea Co Ltd is priced at 112.00 with no change, underperforming its sector and showing a year-to-date decline of 33.73%. Weak fundamentals, poor investor sentiment, and significant challenges contribute to its current price stagnation.
As of 19-Aug, Terai Tea Co Ltd is currently priced at 112.00, showing no change (0.00%). The stock has underperformed its sector by 1.41% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has decreased by 1.32%, while it has seen a modest increase of 2.38% over the past month. However, the year-to-date performance is concerning, with a decline of 33.73%. The company has reported weak long-term fundamentals, including a negative compound annual growth rate (CAGR) of -0.55% in operating profits over the last five years, and a poor EBIT to interest ratio of -1.81, indicating difficulties in servicing its debt. Additionally, the company has reported losses, leading to negative return on capital employed (ROCE), which further dampens investor confidence.

In the broader market context, the Sensex has increased by 1.76% over the past week and has a year-to-date return of 4.49%, contrasting sharply with Terai Tea Co's significant decline. The stock's liquidity is also a concern, as evidenced by a 65.66% drop in delivery volume compared to the 5-day average. This lack of investor participation, combined with the company's flat results and reliance on non-operating income, suggests that the stock is viewed as risky compared to its historical valuations. Overall, the combination of weak financial performance, poor investor sentiment, and underperformance relative to the benchmark indicates that Terai Tea Co is facing significant challenges that are contributing to its current price stagnation.
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