Rudra Global Infra Faces Continued Decline Amid Financial Struggles and High Debt Levels

Rudra Global Infra Products, a microcap player in the steel, sponge iron, and pig iron industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 26.65. This decline marks a continued downturn, with the stock underperforming its sector by 3.44% and recording a total drop of 13.85% over the past four days.
The company's performance over the past year has been notably poor, with a decline of 30.21%, contrasting sharply with the Sensex's positive return of 5.01%. Financial metrics reveal a concerning trend, as Rudra Global has reported negative results for three consecutive quarters, with operating profit to interest ratios at a low of 1.64 times. Additionally, the company faces challenges in servicing its debt, reflected in a high Debt to EBITDA ratio of 3.01 times.

Despite these struggles, Rudra Global's valuation appears attractive, with a return on capital employed (ROCE) of 14 and an enterprise value to capital employed ratio of 1.7. However, the stock's technical indicators suggest a bearish trend, further complicating its market position.