Tulsyan NEC Faces Financial Struggles Amid Significant Stock Volatility and Debt Concerns

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 marks a notable decline, as the stock has underperformed the broader market, with a one-year performance of -50.67% compared to the Sensex's gain of 2.91%.
Despite today's performance, where Tulsyan NEC outperformed its sector by 4.25%, the stock opened with a loss of 2.06% and reached an intraday high of Rs. 43.3, reflecting ongoing bearish trends. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downward trajectory.

Financially, Tulsyan NEC faces challenges, including significant operating losses and a high Debt to EBITDA ratio of 171.78 times, which raises concerns about its ability to service debt. Recent quarterly results show a sharp decline in profit after tax, falling to Rs. -26.96 crore, and net sales at their lowest point of Rs. 180.23 crore. Additionally, 99.63% of promoter shares are pledged, adding further pressure in a declining market.