Tulsyan NEC Faces Financial Struggles Amid Significant Market Volatility and High Debt Concerns

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 reported a negative PAT of Rs. -26.96 crore and a troubling one-year return of -59.18%, alongside high debt concerns and a majority of promoter shares pledged.
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 the sector, which has seen a decline of 8.2%, while Tulsyan NEC outperformed by 3.74% today despite a two-day consecutive fall totaling 9.3%.

The company’s performance metrics reveal a troubling trend, with a one-year return of -59.18%, starkly contrasting with the Sensex's decline of only -2.45% over the same period. Financially, Tulsyan NEC is grappling with substantial operating losses, reflected in a negative PAT of Rs. -26.96 crore for the latest quarter, marking a dramatic decline of 182.8% compared to the previous four-quarter average.

The stock is currently trading below all key moving averages, indicating a bearish technical trend. Additionally, a high debt-to-EBITDA ratio of 171.78 times raises concerns about the company's ability to service its debt. With 99.63% of promoter shares pledged, the stock faces added pressure in a declining market.
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