Persistent Downtrend and Market Underperformance
Tijaria Polypipe’s current price stands at ₹5.20, down by 5.11% on the day, continuing a seven-day losing streak that has eroded nearly 14% of its value in that period alone. This short-term weakness is compounded by the stock’s underperformance against the broader market indices. Over the past week, the stock has declined by 11.71%, starkly contrasting with the Sensex’s marginal 0.40% gain. The trend extends over longer horizons, with the stock falling 18.24% in the last month while the Sensex remained nearly flat. Year-to-date, Tijaria Polypipe has plummeted 57.38%, whereas the Sensex has advanced by 8.69%. This divergence highlights the stock’s inability to keep pace with market recovery and growth.
Moreover, the stock’s performance over one, three, and five years reveals a consistent pattern of underachievement. In the last year, the stock has lost 62.88% of its value, while the Sensex gained 7.21%. Over three years, Tijaria Polypipe declined 24.75%, contrasting with the Sensex’s robust 37.41% rise. The five-year comparison is even more stark, with the stock down 34.18% against the Sensex’s 80.85% appreciation. Such sustained underperformance signals deep-rooted issues affecting investor confidence.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Technical Weakness and Investor Behaviour
The stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a bearish technical setup. Despite a notable surge in delivery volume on 18 Dec, which rose by over 900% compared to the five-day average, the price continued to decline. This suggests that increased trading activity has not translated into buying pressure sufficient to reverse the downtrend.
Liquidity remains adequate for trading, but the stock’s consistent underperformance relative to its sector and the broader market has likely dampened investor enthusiasm. Institutional investors have reduced their holdings by 0.77% in the previous quarter, now collectively owning just 3.84% of the company. Given their superior analytical resources, this reduction signals a cautious stance on the stock’s prospects.
Fundamental Challenges Weighing on the Stock
Tijaria Polypipe’s fundamental profile is characterised by weak long-term growth and financial distress. The company reports a negative book value, reflecting erosion of shareholder equity and signalling weak long-term financial health. Over the past five years, net sales have declined at an annual rate of 100%, while operating profit has stagnated at zero growth. This lack of revenue expansion and profitability growth undermines the company’s ability to generate sustainable returns.
Further compounding concerns is the company’s negative EBITDA position, with quarterly PBDIT reported at a loss of ₹0.11 crore. The debtors turnover ratio stands at a low of 0.00 times, indicating inefficiencies in receivables management. Although the company carries a debt-to-equity ratio averaging zero, the overall financial weakness and negative operating cash flows present significant risks.
Interestingly, despite the stock’s steep price decline of nearly 63% over the past year, reported profits have increased by 51.5%. This disconnect between earnings growth and share price performance may reflect market scepticism about the sustainability of profits or concerns over other financial metrics and operational risks.
Tijaria Polypipe or something better? Our SwitchER feature analyzes this Microcap Plastic Products - Industrial stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Conclusion: A Stock Under Pressure
The decline in Tijaria Polypipe’s share price as of 19-Dec is a reflection of its ongoing financial struggles, poor growth trajectory, and negative investor sentiment. The stock’s consistent underperformance against the Sensex and sector benchmarks, combined with weak technical indicators and reduced institutional interest, paints a challenging outlook. While rising delivery volumes indicate some trading interest, the fundamental weaknesses and negative operating results continue to weigh heavily on the stock’s valuation.
Investors should approach Tijaria Polypipe with caution, considering the company’s negative book value, flat sales growth, and negative EBITDA. The disconnect between profit growth and share price performance suggests that the market remains unconvinced about the company’s turnaround prospects. Until there is a clear improvement in fundamentals and sustained positive momentum, the stock is likely to remain under pressure.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
