Tulsyan NEC Hits 52-Week Low Amidst Significant Financial Struggles and High Debt Concerns
Tulsyan NEC, a microcap in the Steel/Sponge Iron/Pig Iron sector, has reached a new 52-week low, underperforming the sector despite a slight outperformance today. The company reported a significant decline in net sales and a negative profit after tax, alongside a high debt-to-EBITDA ratio and heavily pledged promoter shares.
Tulsyan NEC, a microcap player in the Steel/Sponge Iron/Pig Iron industry, has seen significant activity today, hitting a new 52-week low of Rs. 40. The stock has underperformed the sector, which has declined by 8.2%, while Tulsyan NEC managed to outperform the sector by 3.74% today despite a two-day consecutive fall totaling -9.3%. Currently, Tulsyan NEC is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. The company's one-year performance stands at a staggering -59.18%, contrasting sharply with the Sensex's decline of only -2.45% over the same period.
Recent financial results have shown troubling signs, with a net sales figure of Rs. 180.23 crore and a negative profit after tax of Rs. -26.96 crore, reflecting a significant drop of -182.8% compared to the previous quarter. Additionally, the company has a high debt-to-EBITDA ratio of 171.78 times, raising concerns about its ability to service debt. With 99.63% of promoter shares pledged, the stock faces added pressure in a declining market.
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