Sadhana Nitro Chem Faces Persistent Decline Amidst Weak Fundamentals and Pledged Shares

Sadhana Nitro Chem, a microcap player in the commodity chemicals industry, has seen significant activity today, hitting a new 52-week low of Rs. 7.39. The stock has been on a downward trajectory, underperforming its sector by 5.21% and experiencing a consecutive decline over the last 21 days, resulting in a staggering 63.99% drop in returns during this period.
In terms of moving averages, Sadhana Nitro Chem is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend. Over the past year, the stock has recorded an 86.16% decline, contrasting sharply with the Sensex's positive performance of 3.98%.

Financially, the company has shown weak long-term fundamentals, with a Return on Capital Employed (ROCE) of just 5.37% and a high Debt to EBITDA ratio of 5.35 times, raising concerns about its ability to service debt. Additionally, 52.67% of promoter shares are pledged, which has increased by 28.99% in the last quarter, potentially adding further pressure on the stock. Despite these challenges, the company reported a notable growth in net profit of 58.91% in its latest results, highlighting a complex financial landscape.