Tulsyan NEC Faces Financial Struggles Amid Significant Stock Volatility and Pledged Shares

Tulsyan NEC, a microcap player in the Steel/Sponge Iron/Pig Iron industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 40.8. This decline comes after a series of four consecutive days of losses, although the stock managed to outperform its sector by 4.25% today. It opened the day with a loss of 2.06% but later reached an intraday high of Rs. 43.3, reflecting a slight recovery.
Over the past year, Tulsyan NEC has faced considerable challenges, with a staggering 50.67% decline in its stock price, contrasting sharply with the Sensex's positive performance of 2.91%. The company's financial health is concerning, marked by operating losses and a high Debt to EBITDA ratio of 171.78 times. Recent quarterly results revealed a significant drop in profit after tax, falling to Rs. -26.96 crore, and net sales at their lowest point of Rs. 180.23 crore.

The stock's technical indicators suggest a bearish trend, with moving averages indicating it is trading below key benchmarks. Additionally, a high percentage of promoter shares, 99.63%, are pledged, which could exert further downward pressure in a declining market.