Tulsyan NEC Ltd Stock Falls to 52-Week Low of Rs.25.5 Amidst Continued Downtrend

Recent Price Movement and Market Context

On 23 Feb 2026, Tulsyan NEC Ltd’s share price fell by 4.28% to hit an intraday low of Rs.25.5, the lowest level recorded in the past year. This decline extends a three-day losing streak during which the stock has shed 13.59% of its value. The stock’s performance today notably lagged the Iron & Steel Products sector, underperforming by 4.91%. Furthermore, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.

In contrast, the broader market has shown resilience. The Sensex opened 92.12 points higher and climbed further by 464.78 points, closing at 83,371.61, a gain of 0.67%. The benchmark index is currently 3.34% shy of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. Despite this positive market backdrop, Tulsyan NEC Ltd’s stock continues to face downward pressure.

Financial Performance and Fundamental Concerns

Tulsyan NEC Ltd’s financial indicators reveal challenges that have contributed to the stock’s decline. The company reported a Profit Before Tax (PBT) of negative Rs.34.19 crores in the December quarter, representing a 33.9% deterioration compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) stood at a loss of Rs.28.63 crores, down 34.5% relative to the same benchmark. These figures underscore a continuation of losses at the operating level.

Over the last five years, the company’s net sales have contracted at an annualised rate of 6.60%, while operating profit has plunged by 349.01%. This weak growth trajectory is compounded by a high debt burden, with a Debt to EBITDA ratio of 153.44 times, indicating limited capacity to service debt obligations effectively. The debt-equity ratio at the half-year mark reached 1.66 times, the highest recorded, further highlighting financial strain.

The company’s long-term fundamental strength is rated weak, reflected in its Mojo Score of 3.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 8 Oct 2024. The market capitalisation grade stands at 4, signalling a relatively small market cap with associated liquidity and valuation concerns.

Stock Valuation and Risk Factors

The stock’s valuation metrics indicate elevated risk. Tulsyan NEC Ltd’s share price has declined by 51.34% over the past year, significantly underperforming the Sensex, which gained 10.70% during the same period. Profitability has also deteriorated sharply, with profits falling by 71.4% year-on-year. This combination of declining earnings and share price depreciation points to a challenging environment for the company.

Another notable concern is the high level of promoter share pledging. Approximately 99.63% of promoter shares are pledged, which can exert additional downward pressure on the stock price in volatile or falling markets. This factor adds to the stock’s risk profile and may influence market sentiment negatively.

In terms of relative performance, Tulsyan NEC Ltd has underperformed the BSE500 index over multiple time frames, including the last three years, one year, and three months. This consistent underperformance reflects both sector-specific and company-specific headwinds.

Industry and Sector Comparison

Within the Iron & Steel Products sector, Tulsyan NEC Ltd’s performance contrasts with broader market trends. While the sector has experienced fluctuations, the company’s stock has lagged behind peers and the overall market indices. The Sensex’s current upward trajectory, supported by mega-cap stocks, highlights the divergence between the company’s share price movement and general market sentiment.

Summary of Key Metrics

Tulsyan NEC Ltd’s 52-week high was Rs.53.5, indicating that the current price of Rs.25.5 represents a decline of over 52% from the peak. The stock’s day change today was -4.28%, and it has been consistently trading below all major moving averages, signalling a sustained downtrend. The company’s financial results for the December quarter showed significant losses, with PBT and PAT falling by approximately one-third compared to recent averages.

The company’s debt profile remains a concern, with a Debt to EBITDA ratio exceeding 150 times and a debt-equity ratio of 1.66 times. These figures suggest limited financial flexibility. The high promoter share pledge ratio further compounds the risk environment for the stock.

Conclusion

Tulsyan NEC Ltd’s stock reaching a 52-week low of Rs.25.5 reflects a combination of weak financial performance, high leverage, and market pressures. Despite a broadly positive market environment, the company’s share price has continued to decline, underperforming both its sector and the broader indices. The financial metrics and valuation indicators point to ongoing challenges that have influenced the stock’s trajectory over the past year and beyond.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →