Why is Tiger Logistics (India) Ltd falling/rising?

Recent Price Movement and Market Context

On the trading day of 18 February, Tiger Logistics underperformed significantly, with its share price dipping by ₹1.28, representing a 3.72% decrease. The stock touched an intraday low of ₹33.10, marking a 3.78% decline during the session. This performance was notably weaker than its sector peers, underperforming by 4.65% on the day. Such a steep intraday fall indicates selling pressure and a lack of immediate buying interest at current price levels.

Examining the stock’s moving averages reveals a mixed technical picture. The current price remains above the 20-day moving average, suggesting some short-term support. However, it is trading below the 5-day, 50-day, 100-day, and 200-day moving averages, signalling a prevailing bearish trend over medium to long-term horizons. This technical setup often deters momentum-driven investors and may contribute to the ongoing downward pressure.

Investor participation has also waned, with delivery volume on 17 February recorded at 95,030 shares, a sharp decline of nearly 40% compared to the five-day average delivery volume. This drop in investor engagement suggests reduced conviction or interest in the stock, which can exacerbate price declines due to thinner trading liquidity and less robust demand.

Comparative Performance Against Benchmarks

When analysed against the broader market benchmark, the Sensex, Tiger Logistics’ performance has been markedly weaker across multiple time frames. Over the past week, the stock declined marginally by 0.09%, while the Sensex fell by 0.59%, indicating a slight relative outperformance in the very short term. However, this trend reverses over longer periods. Over the past month, Tiger Logistics dropped by 0.90%, whereas the Sensex gained 0.20%. Year-to-date, the stock has fallen 6.97%, significantly underperforming the Sensex’s 1.74% decline.

The disparity becomes even more pronounced over the one-year horizon, with Tiger Logistics plunging 33.96%, in stark contrast to the Sensex’s 10.22% gain. Over three years, the stock remains down 12%, while the Sensex has surged 37.26%. Despite this, the stock’s five-year return remains impressive at +801.22%, far outpacing the Sensex’s 63.15% gain, reflecting strong historical growth that has recently faltered.

These figures highlight that while Tiger Logistics has delivered exceptional long-term returns, recent performance has been disappointing, with the stock lagging both its sector and the broader market. This underperformance may be weighing on investor sentiment and contributing to the current price weakness.

Liquidity and Trading Considerations

Liquidity remains adequate for Tiger Logistics, with the stock’s trading volume supporting a trade size of approximately ₹0.03 crore based on 2% of the five-day average traded value. While this level of liquidity is sufficient for routine trading, the recent decline in delivery volumes suggests that fewer investors are holding shares for the longer term, potentially increasing volatility and price sensitivity to market flows.

In summary, the decline in Tiger Logistics’ share price on 18 February is primarily driven by its weak year-to-date and one-year performance relative to the Sensex and sector peers, combined with technical indicators signalling bearish momentum and falling investor participation. These factors collectively contribute to the current downward pressure on the stock, despite its historically strong five-year returns.

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