Why is Terai Tea Co falling/rising?
As of 02-Sep, Terai Tea Co Ltd's stock price is Rs 99.75, down 5.0% and at a new 52-week low, significantly underperforming its sector and the broader market. The company faces weak fundamentals, evidenced by declining profits and negative EBITDA, contributing to a year-to-date decline of 40.98%.
As of 02-Sep, Terai Tea Co Ltd's stock price is currently at Rs 99.75, reflecting a decline of Rs 5.25 or 5.0%. The stock has hit a new 52-week low today, underperforming its sector by 7.25%. It experienced a wide trading range throughout the day, with an intraday high of Rs 109.8 and a low of Rs 99.75. Over the past week, the stock has decreased by 6.12%, and it has shown a significant decline of 40.98% year-to-date, contrasting sharply with the Sensex, which has gained 2.58% during the same period. The company's fundamentals are weak, evidenced by a negative CAGR growth in operating profits over the last five years and a poor EBIT to interest ratio, indicating challenges in servicing its debt.In the broader market context, while the tea/coffee sector has gained by 2.23%, Terai Tea Co has notably underperformed, with a one-year return of -32.60% compared to the BSE500's decline of only -4.82%. This stark contrast highlights the company's struggles, as it has reported losses and negative EBITDA, further contributing to its weak stock performance. Despite an increase in investor participation, the overall sentiment remains negative due to the company's flat results and reliance on non-operating income, which constitutes a significant portion of its profit before tax.
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