Why is TVS Supply falling/rising?

Jul 09 2025 10:46 PM IST
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As of 09-Jul, TVS Supply Chain Solutions Ltd has seen a price increase to Rs 133.65, reversing a six-day decline, but it remains down 25.06% year-to-date and has weak fundamentals, impacting investor sentiment. Despite a short-term gain, concerns about liquidity and a lack of confidence persist in the market.
As of 09-Jul, TVS Supply Chain Solutions Ltd is experiencing a price increase, with the current price at Rs 133.65, reflecting a rise of 2.75 or 2.1%. Today's performance indicates a trend reversal as the stock has gained after six consecutive days of decline. It outperformed its sector by 1.11% and reached an intraday high of Rs 135.25. However, the stock's recent performance over the past week shows a decline of 0.48%, while it has increased by 1.02% over the past month. Despite a significant year-to-date drop of 25.06%, the stock is trading at a discount compared to its peers, with a return on capital employed (ROCE) of 3.9, suggesting attractive valuation. Nonetheless, the company has reported losses and a weak ability to service its debt, which negatively impacts investor sentiment.

In the broader market context, the Sensex has shown a slight increase of 0.15% over the past week, while TVS Supply has underperformed with a decline. The stock's year-to-date performance is significantly worse than the benchmark, which has gained 6.91%. The falling investor participation, indicated by a 27.65% drop in delivery volume compared to the five-day average, raises concerns about liquidity and investor confidence. Additionally, domestic mutual funds hold only a small stake in the company, which may reflect their lack of comfort with the current price or business outlook. Overall, while the stock has shown a short-term rise, its long-term fundamentals remain weak, contributing to a cautious market perception.
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