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

Sadhana Nitro Chem, a microcap player in the commodity chemicals sector, has seen significant activity today as its stock price reached a new 52-week low of Rs. 7.77. This decline marks a notable trend, as the stock has experienced a continuous fall for the past 20 days before showing signs of a reversal. Despite this, Sadhana Nitro Chem has outperformed its sector by 2.44% today.
In terms of performance metrics, the company has faced challenges over the past year, with a staggering decline of 84.21%, contrasting sharply with the Sensex's positive growth of 4.24% during the same period. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.

Financially, Sadhana Nitro Chem has reported a growth in net profit of 58.91% for the quarter ending March 25, alongside a strong operating profit to interest ratio of 3.08 times. However, the company struggles with a high debt-to-EBITDA ratio of 5.35 times and a low return on capital employed (ROCE) of 5.37%, raising concerns about its long-term financial health. Additionally, over half of the promoter shares are pledged, which could exert further pressure on the stock in a declining market.