Shangar Decor Faces Significant Challenges Amidst Declining Stock Performance and High Debt Concerns

Shangar Decor, a microcap company in the diversified commercial services sector, has experienced significant volatility, hitting a new 52-week low of Rs. 0.44 today. The stock has underperformed its sector by 2.26% and has seen a consecutive decline over the past four days, resulting in a total drop of 13.46% during this period.
In terms of moving averages, Shangar Decor is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a bearish trend. Over the past year, the stock has reported a staggering decline of 68.09%, contrasting sharply with the Sensex's modest gain of 2.40%.

Financially, the company is grappling with operating losses and a high debt-to-EBITDA ratio of 4.05 times, which raises concerns about its ability to service debt. Recent quarterly results reflect a significant downturn, with a profit before tax of Rs. -2.17 crore, a drop of 338.46%, and a net profit after tax of Rs. -1.59 crore, down 352.4%.

Despite these challenges, Shangar Decor's return on capital employed stands at 12.6, and it is trading at a discount compared to its peers. However, promoter holding has decreased to 2.96%, indicating potential concerns about confidence in the company's future.