Twamev Constructions Faces Significant Volatility Amid Weak Financial Fundamentals and High Debt Levels

Twamev Constructions & Infrastructure has experienced significant volatility today, hitting a new 52-week low of Rs. 25.12. The stock has underperformed the sector, declining by 2.58% and marking a consecutive fall over the past three days, resulting in a total drop of 7.71%. Currently, Twamev is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.
In terms of financial performance, Twamev has reported a staggering -27.43% return over the past year, contrasting sharply with the Sensex's positive performance of 9.39%. The company's long-term fundamentals appear weak, with a -8.99% CAGR growth in net sales over the last five years and a high debt-to-EBITDA ratio of 29.64 times, suggesting challenges in servicing its debt.

Despite a notable increase in net sales of 119.46% in March 2025 and positive results for the last two consecutive quarters, the overall outlook remains cautious. The stock's return on equity averages 6.65%, reflecting low profitability, while its return on capital employed stands at 4.1, indicating a high valuation relative to its capital employed.