Why is Tirupati Sarjan Ltd falling/rising?

Recent Price Movement and Market Performance

Tirupati Sarjan Ltd has been on a steady decline over the past week, losing 4.62% compared to the Sensex’s more modest 1.77% drop. Over the last month, the stock has fallen sharply by 12.70%, significantly underperforming the benchmark index’s 3.56% decrease. Year-to-date, the stock has declined by 1.30%, while the Sensex has dropped 3.89%, indicating some relative resilience in the very short term. However, the longer-term picture is far less encouraging. Over the past year, the stock has plummeted by 42.31%, in stark contrast to the Sensex’s 8.01% gain. Similarly, over three and five years, Tirupati Sarjan has lagged considerably behind the broader market, with returns of -21.92% and +27.09% respectively, compared to the Sensex’s 35.12% and 65.06% gains.

On 21-Jan, the stock hit a new 52-week low of ₹9.27, underscoring the persistent selling pressure. It has also underperformed its sector by 0.86% on the day, and has been declining for five consecutive sessions, losing 5.26% in that period. The stock is trading below all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—signalling a bearish technical outlook. Investor participation has also waned, with delivery volumes on 20-Jan falling by 42.52% compared to the five-day average, suggesting reduced buying interest and liquidity concerns.

Fundamental Weaknesses Weighing on the Stock

Despite a seemingly attractive valuation, with a Return on Capital Employed (ROCE) of 7.5% and an enterprise value to capital employed ratio of 0.6, Tirupati Sarjan’s fundamentals reveal significant weaknesses. The company’s long-term growth has been lacklustre, with net sales growing at an annual rate of 14.47% over the past five years, but operating profit growth barely registering at 1.30%. This sluggish profitability growth undermines investor confidence in the company’s ability to generate sustainable earnings.

Moreover, the company’s ability to service debt is a concern, with a high Debt to EBITDA ratio of 4.31 times, indicating elevated leverage and potential financial strain. This is compounded by disappointing quarterly results reported in September 2025, where net sales fell sharply by 22.92% to ₹37.83 crores, profit before tax excluding other income dropped to a low of ₹1.06 crore, and earnings per share hit a nadir of ₹0.31. These figures highlight operational challenges and margin pressures that have likely contributed to the stock’s decline.

Additionally, the stock’s performance relative to broader market indices and sector peers has been consistently below par. It has underperformed the BSE500 index over the last three years, one year, and three months, signalling persistent investor scepticism. The majority of shareholders are non-institutional, which may limit the stock’s appeal to large, stable investors who often provide support during volatile periods.

Conclusion: Why Tirupati Sarjan Ltd Is Falling

The decline in Tirupati Sarjan Ltd’s share price as of 21-Jan is primarily driven by a combination of weak financial performance, deteriorating fundamentals, and subdued investor interest. The company’s poor quarterly results, high leverage, and lacklustre profit growth have eroded confidence, reflected in the stock’s sustained underperformance against benchmarks and sector peers. Technical indicators reinforce the bearish sentiment, with the stock trading below all major moving averages and hitting new lows. Reduced trading volumes further suggest waning investor participation, which may exacerbate price declines in the near term.

While the valuation metrics indicate the stock is trading at a discount, this has not been sufficient to attract significant buying interest given the company’s operational challenges and financial risks. Investors seeking exposure in this space may wish to consider alternative stocks with stronger fundamentals and more favourable growth prospects.

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 →