Twamev Constructions Faces Financial Struggles Amid Declining Stock Performance and Weak Fundamentals

Twamev Constructions & Infrastructure has experienced significant activity today, reaching a new 52-week low of Rs 24.4. The stock has underperformed the sector, declining by 4.55% and marking a consecutive three-day fall with a total decrease of 6.08%. Intraday, the stock touched a low of Rs 24.4, reflecting a drop of 4.98%.
In terms of performance metrics, Twamev's one-year performance stands at a notable decline of 42.38%, contrasting sharply with the Sensex's decline of just 1.71%. The company has shown weak long-term fundamental strength, evidenced by a -6.35% CAGR growth in net sales over the past five years and a high Debt to EBITDA ratio of 29.64 times, indicating challenges in servicing debt.

Despite recent positive results, including a 52.07% growth in net sales for the latest quarter, the overall financial health remains concerning. The return on equity averages 6.65%, suggesting low profitability, while the return on capital employed is at 4.1. Additionally, promoter confidence appears to be waning, with a 4.96% reduction in their stake over the last quarter.