Vardhman Special Steels Faces Decline Amidst Weak Performance and Low Inventory Turnover

Vardhman Special Steels, a small-cap player in the Steel/Sponge Iron/Pig Iron industry, has experienced significant activity today, hitting a new 52-week low of Rs. 185.55. The stock has underperformed its sector by 0.91% and has seen a consecutive decline over the past five days, resulting in an overall drop of 8.82% during this period.
Currently, Vardhman Special Steels is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Over the past year, the stock has recorded a performance of -8.17%, contrasting sharply with the Sensex, which has gained 2.10%.

Key financial metrics reveal a low inventory turnover ratio of 4.62 times and a decline in profit after tax (PAT) to Rs. 21.46 crore, down 19.4%. Despite these challenges, the company maintains a low debt-to-equity ratio of 0.31 and has shown healthy long-term growth, with operating profit increasing at an annual rate of 69.83%. Institutional investors have also increased their stake by 0.64% in the last quarter, now holding 5.09% of the company.