Why is TVS Supply falling/rising?

Jul 01 2025 10:47 PM IST
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As of 01-Jul, TVS Supply Chain Solutions Ltd's stock price is 136.10, reflecting a slight decline of 0.04%. Despite recent short-term gains, the stock has significantly underperformed year-to-date and over the past year, facing challenges such as weak long-term fundamentals and low investor confidence.
As of 01-Jul, TVS Supply Chain Solutions Ltd is experiencing a slight decline in its stock price, currently at 136.10, reflecting a decrease of 0.05 (-0.04%). Today's performance indicates that the stock has outperformed its sector by 0.44%, and it is trading above its 5-day, 20-day, 50-day, and 100-day moving averages, although it remains below the 200-day moving average. Despite a positive short-term return of 4.01% over the past week and 6.95% over the past month, the stock has significantly underperformed over the longer term, with a year-to-date decline of 23.69% and a 1-year return of -25.08%. The company has reported a substantial increase in profits by 68% over the past year, yet it also faces challenges such as weak long-term fundamental strength and a negative return on equity (ROE), which may contribute to investor hesitance.

In the broader market context, the stock's recent performance has outpaced the Sensex, which has gained 2.00% over the past week and 2.76% over the past month. However, the stock's long-term trajectory remains concerning, with consistent underperformance against the benchmark over the last three years. The company's weak ability to service its debt, as indicated by a poor EBIT to Interest ratio, and a significant drop in profit after tax in the latest quarter further exacerbate the situation. Additionally, the low stake held by domestic mutual funds suggests a lack of confidence in the stock's valuation, which may hinder its recovery in the market.
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