Garg Furnace Faces Significant Volatility Amid Broader Market Recovery and Promoter Confidence

Garg Furnace, a microcap player in the Steel/Sponge Iron/Pig Iron industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 163. The stock opened with a notable gap down, reflecting a loss of 5.5% and has since underperformed its sector by 1.01%. Over the past two days, Garg Furnace has seen a decline of 11.74%, continuing a downward trend that has persisted for some time.
Currently, Garg Furnace is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish technical outlook. In contrast, the broader market, represented by the Sensex, has shown some recovery after a significant drop, although it remains close to its own 52-week low.

Despite the stock's recent struggles, Garg Furnace has demonstrated a strong ability to service its debt, with a low Debt to EBITDA ratio of 1.09 times. The company reported positive quarterly results in December 2024, with a PBDIT of Rs. 2.20 crore and a notable operating profit margin. Additionally, promoter confidence appears to be rising, as they have increased their stake in the company by 7.49% in the last quarter, now holding 56.85%.