Rishabh Digha Steel Faces Financial Challenges Amid Quality Grade Downgrade

Jun 03 2025 08:04 AM IST
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Rishabh Digha Steel & Allied Products has recently seen a downgrade in its quality grade, highlighting financial challenges. The company has faced significant declines in sales and EBIT growth, alongside a negative EBITDA. Despite a notable stock return over the past year, its overall financial health raises concerns.
Rishabh Digha Steel & Allied Products has recently undergone an adjustment in evaluation, reflecting a change in its quality grade. The company's quality grade has shifted to below average, which is indicative of underlying challenges in its financial metrics.

Over the past five years, the company has experienced a significant decline in sales growth, reported at -16.06%, alongside a drastic drop in EBIT growth of -172.48%. The average EBIT to interest ratio stands at -0.96, suggesting difficulties in servicing its debt obligations. Additionally, the company has a negative EBITDA, which raises concerns about its operational viability.

Despite these challenges, Rishabh Digha Steel has shown a notable return of 63.95% over the past year, outperforming the BSE 500 index. However, this performance comes amid a backdrop of flat financial results for the quarter ending March 2025, with a reported PAT of Rs 0.52 crore, reflecting an 81.8% decline compared to the previous four-quarter average.

The stock's current trading environment indicates a mildly bullish technical stance, yet the overall financial health remains a point of concern.

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