Sadhana Nitro Chem Faces Severe Decline Amidst Financial Struggles and High Debt Concerns

Sadhana Nitro Chem, a microcap player in the commodity chemicals industry, has experienced significant volatility, hitting a new 52-week low of Rs. 6.04 today. The stock has been on a downward trajectory, underperforming its sector by 4.97% and marking a consecutive decline over the past 21 days, resulting in a staggering 65.56% drop in returns during this period.
In terms of performance metrics, Sadhana Nitro Chem's one-year performance stands at a notable -90.22%, contrasting sharply with the Sensex's positive growth of 4.45% over the same timeframe. The company's financial health is further reflected in its average Return on Capital Employed (ROCE) of 5.37%, indicating weak long-term fundamental strength. Additionally, the high Debt to EBITDA ratio of 5.35 times raises concerns about its ability to service debt.

Despite a recent surge in net profit by 58.91% and a strong operating profit to interest ratio, the stock's overall performance has consistently lagged behind benchmarks, with 52.67% of promoter shares pledged, adding further pressure in a declining market.