Tulsyan NEC Faces Financial Struggles Amid Significant Stock Volatility and High 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. The stock has underperformed its sector, which has declined by 8.2%, while Tulsyan NEC's performance today outpaced the sector by 3.74%. However, the stock has faced consecutive losses over the past two days, resulting in a total decline of 9.3%.
In terms of technical indicators, Tulsyan NEC is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, reflecting a bearish trend. The company's financial health raises concerns, with operating losses and a high debt-to-EBITDA ratio of 171.78 times. Recent quarterly results showed a significant drop in profit after tax, falling to Rs. -26.96 crore, and net sales at Rs. 180.23 crore, marking the lowest figures in recent quarters.

The stock's performance over the past year has been particularly troubling, with a decline of 59.18%, starkly contrasting with the Sensex's drop of only 2.45%. Additionally, 99.63% of promoter shares are pledged, which may exert further downward pressure in a declining market.