TARC Ltd Faces Financial Scrutiny Amid Significant Stock Volatility and Losses

TARC Ltd, a small-cap player in the construction and real estate sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 108.65. The stock opened with a gain of 2.33% but ultimately underperformed its sector by 1.12%. Throughout the trading session, TARC reached an intraday high of Rs. 114.8 before declining to its low.
The company's performance over the past year has been concerning, with a decline of 18.77%, contrasting sharply with the Sensex's modest gain of 1.49%. TARC's financial health is under scrutiny, as it has reported operating losses and negative results for six consecutive quarters. Key metrics reveal a high debt-to-EBITDA ratio of -1.00 times and a low return on equity of 0.39%, indicating challenges in profitability and debt servicing.

Additionally, TARC's stock is trading below all major moving averages, reflecting a bearish technical trend. Despite these challenges, institutional investors have slightly increased their stake in the company, now holding 6.68%. This shift may suggest a cautious interest in TARC's long-term fundamentals amidst its current struggles.