Why is TVS Supply falling/rising?
As of 16-Jul, TVS Supply Chain Solutions Ltd's stock price is 135.05, down 0.55%, with a year-to-date decline of 24.28% and an annual return of -30.71%. Despite an attractive valuation, the company faces challenges due to reported losses, weak long-term fundamentals, and limited interest from domestic mutual funds.
As of 16-Jul, TVS Supply Chain Solutions Ltd is experiencing a decline in its stock price, currently at 135.05, down by 0.75 (-0.55%). The stock has underperformed its sector today by 0.74%, despite a notable increase in delivery volume, which rose by 55.19% compared to the 5-day average. Over the past week, the stock has shown a slight gain of 1.05%, but it has significantly underperformed over the past month with a decline of 5.82%. The stock's year-to-date performance is particularly concerning, with a drop of 24.28%, and an annual return of -30.71%. While the company has an attractive valuation with a return on capital employed (ROCE) of 3.9 and is trading at a discount compared to its peers, it has reported losses and a negative return on equity (ROE), which may contribute to investor hesitance.Broader market context indicates that the stock has underperformed relative to the benchmark, with the Sensex gaining 1.02% over the past month while TVS Supply has declined. The broader market has shown resilience, with a year-to-date return of 5.75%, contrasting sharply with TVS Supply's negative performance. The weak long-term fundamentals, including a -0.83% compound annual growth rate (CAGR) in operating profits over the last five years and a poor EBIT to interest ratio of 0.74, further highlight the challenges the company faces. Additionally, the limited interest from domestic mutual funds, holding only 0.22% of the company, suggests a lack of confidence in the stock's current valuation and future prospects.
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