Tulsyan NEC Faces Financial Struggles Amidst Broader Market Volatility

Apr 07 2025 10:41 AM IST
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Tulsyan NEC, a microcap in the Steel/Sponge Iron/Pig Iron sector, has hit a new 52-week low amid significant volatility. The company faces financial challenges, including an operating loss and a high debt-to-EBITDA ratio. Its stock has underperformed, with a substantial decline in profit and net sales.
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. The stock has underperformed its sector, which has declined by 8.2%, while Tulsyan NEC has fallen by 9.3% over the past two days. Currently, it is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.

The company's financial health appears concerning, with a reported operating loss and a staggering debt-to-EBITDA ratio of 171.78 times. Over the past year, Tulsyan NEC's performance has plummeted by 59.18%, starkly contrasting with the Sensex's decline of only 2.45%. Recent quarterly results indicate a significant drop in profit after tax, falling to Rs. -26.96 crore, and net sales have also reached a low of Rs. 180.23 crore.

Additionally, 99.63% of promoter shares are pledged, which could exert further downward pressure on the stock in a declining market. Overall, Tulsyan NEC's current trajectory reflects a challenging environment for the company amidst broader market fluctuations.
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