TARC Ltd Faces Continued Decline Amid Ongoing Financial Struggles and High Debt Levels

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. 107.5. This decline marks a continuation of a downward trend, with the stock underperforming its sector by 0.84% and recording a total drop of 3.14% over the past two days.
The company's performance over the past year has been notably poor, with a staggering decline of 19.69%, contrasting sharply with the Sensex's gain of 2.11%. TARC's financial health is concerning, 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.

Despite these struggles, institutional investors have slightly increased their stake in TARC, now holding 6.68% of the company. However, the overall technical indicators remain bearish, with the stock trading below all major moving averages, reflecting a deteriorating trend in market sentiment.