Hisar Metal Industries Faces Financial Struggles Amid Declining Profitability and High Debt Levels

Hisar Metal Industries, a microcap player in the Steel/Sponge Iron/Pig Iron industry, has recently undergone an adjustment in evaluation. This revision reflects the company's ongoing challenges in financial performance, particularly highlighted by its ability to manage debt. The company's Debt to EBITDA ratio stands at 3.70 times, indicating significant pressure in servicing its obligations.
Over the past five years, the operating profit has shown a decline, with an annual growth rate of -2.50%. Additionally, the company has reported negative results for eight consecutive quarters, with a profit after tax of Rs 1.94 crore, which has decreased by 46.56%. The return on capital employed (ROCE) is currently at 9.84%, marking a low point for the company.

In terms of market dynamics, the technical trend has been sideways, suggesting a lack of clear price momentum. Despite trading at a discount compared to its peers' historical valuations, the stock has generated a return of -5.60% over the past year, coinciding with a significant drop in profits of 40.2%.

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