Tulsyan NEC Ltd Stock Hits 52-Week Low Amid Continued Downtrend

Recent Price Movement and Market Context

On 17 Feb 2026, Tulsyan NEC Ltd’s share price touched an intraday low of Rs.28.11, closing the day down by 3.55%. This decline extended a losing streak spanning five consecutive sessions, during which the stock has depreciated by 16.08%. The stock’s performance today lagged the Iron & Steel Products sector by 2.96%, underscoring its relative weakness amid a market environment where the Sensex gained 0.29%, closing at 83,516.56 points. Notably, the Sensex is trading just 3.16% below its 52-week high of 86,159.02, supported by mega-cap stocks, while Tulsyan NEC Ltd continues to trade below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum.

Long-Term Performance and Valuation Trends

Over the past year, Tulsyan NEC Ltd’s stock has delivered a negative return of 47.44%, a stark contrast to the Sensex’s positive 9.89% gain over the same period. The stock’s 52-week high was Rs.60.60, highlighting the extent of the decline. This underperformance extends beyond the last year, with the company lagging the BSE500 index across one-year, three-year, and three-month timeframes. The stock’s current valuation is considered risky relative to its historical averages, reflecting investor concerns about the company’s financial health and growth prospects.

Financial Performance and Profitability Concerns

Tulsyan NEC Ltd’s financial results have reflected ongoing difficulties. The company reported a Profit Before Tax (PBT) excluding other income of negative Rs.34.19 crores for the quarter ended December 2025, representing a 33.9% decline compared to the previous four-quarter average. Correspondingly, the Profit After Tax (PAT) for the same period was a loss of Rs.28.63 crores, down 34.5% from the prior quarterly average. These figures highlight the company’s continued negative operating profits and deteriorating earnings trajectory.

Debt and Capital Structure Challenges

Debt servicing capacity remains a critical concern for Tulsyan NEC Ltd. The company’s Debt to EBITDA ratio stands at an elevated 153.44 times, indicating significant leverage relative to earnings before interest, taxes, depreciation, and amortisation. Additionally, the half-yearly debt-to-equity ratio has reached a high of 1.66 times, signalling increased reliance on borrowed funds. Such leverage levels contribute to the stock’s risk profile and weigh on investor sentiment.

Promoter Shareholding and Market Impact

A notable factor exerting downward pressure on the stock price is the high proportion of pledged promoter shares, which account for 99.63% of promoter holdings. In a declining market environment, this elevated pledge percentage can exacerbate selling pressure, as margin calls or deleveraging by promoters may trigger further stock price declines.

Sector and Industry Context

Operating within the Iron & Steel Products sector, Tulsyan NEC Ltd faces a competitive landscape where many peers have demonstrated more stable financial metrics and growth trajectories. The company’s Mojo Score of 3.0 and a recent downgrade to a Strong Sell rating on 8 Oct 2024 reflect the market’s assessment of its weak long-term fundamentals. The company’s net sales have contracted at an annualised rate of 6.60% over the past five years, while operating profit has declined sharply by 349.01% during the same period, underscoring the challenges in sustaining growth and profitability.

Summary of Key Metrics

To encapsulate the current state of Tulsyan NEC Ltd:

• New 52-week low price: Rs.28.11
• One-year stock return: -47.44%
• Debt to EBITDA ratio: 153.44 times
• Debt-to-equity ratio (half-year): 1.66 times
• Promoter share pledge: 99.63%
• Mojo Grade: Strong Sell (upgraded from Sell on 8 Oct 2024)
• Net sales growth (5 years): -6.60% annualised
• Operating profit growth (5 years): -349.01%

Market and Technical Indicators

Technically, the stock’s position below all major moving averages indicates a bearish trend. The sustained decline over the past five trading sessions and the failure to hold above key support levels have contributed to the new 52-week low. This contrasts with the broader market’s positive momentum, where the Sensex is approaching its own 52-week high, supported by mega-cap stocks.

Conclusion

Tulsyan NEC Ltd’s stock reaching a 52-week low at Rs.28.11 reflects a culmination of financial pressures, including declining profitability, high leverage, and significant promoter share pledging. The company’s underperformance relative to sector peers and the broader market highlights ongoing challenges in its business and capital structure. While the broader market environment remains positive, Tulsyan NEC Ltd’s current metrics and price action underscore the difficulties it faces within the Iron & Steel Products sector.

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