Surya Roshni Faces Significant Volatility Amidst Declining Stock Performance and Financial Challenges

Surya Roshni, a midcap player in the Steel/Sponge Iron/Pig Iron industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 205.3. This marks a notable decline, as the stock has fallen nearly 10% over the past two days. Today's performance saw Surya Roshni outperform its sector by 0.52%, despite opening with a substantial loss of 19.16%.
The stock's recent trajectory has been concerning, as it trades below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past year, Surya Roshni has underperformed the broader market, with a return of -20.39% compared to the Sensex's decline of -2.38%. The company's financial metrics reveal a modest annual growth in net sales of 4.78% and operating profit of 8.34% over the last five years, alongside a recent decline in profit after tax by 25.31%.

Despite these challenges, Surya Roshni maintains a strong ability to service its debt, reflected in a low Debt to EBITDA ratio of 1.11 times. The stock is currently trading at a discount relative to its peers, with a Price to Book Value of 2.4 and a return on equity of 14.1%.