Krishna Ventures Faces Severe Financial Struggles Amidst Declining Stock Performance

Krishna Ventures, a microcap player in the realty sector, has experienced significant challenges, culminating in a new 52-week low of Rs. 19.5 today. The stock has been on a downward trajectory, underperforming its sector by 5.34% and marking a consecutive decline over the past 12 days, resulting in a total drop of 30.82% during this period. The company's long-term fundamentals appear weak, with operating profits declining at an annual rate of 47.47% over the last five years. Financial metrics indicate a concerning EBIT to Interest ratio of -0.35, reflecting difficulties in servicing debt. Recent quarterly results show a PBDIT of Rs. -0.53 crore and a PBT less other income of Rs. -0.72 crore, both at their lowest levels. Promoter confidence seems to be waning, as they have reduced their stake by 1.3% in the last quarter, now holding 67.94% of the company. Over the past year, Krishna Ventures has seen a staggering 76.17% decline in stock value, contrasting sharply with the Sensex's 7.63% gain, highlighting the stark disparity in performance.