Tulsyan NEC Limited

Basic Materials — Steel · BSE

₹31.00−₹0.77 (−2.42%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Tulsyan NEC Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tulsyan NEC Limited, together with its subsidiaries, manufactures and sells steel products in India and internationally. It operates through three segments: Steel Division, Synthetic Division, and Power.

IndustrySteel

SectorBasic Materials

Employees358

Annual revenue₹808 Cr

How does it make money?

Turns over ₹808 Cr a year. Of every ₹100 of sales, about ₹-8 reaches shareholders as profit, with ₹-8 left at the operating level before interest, tax and depreciation. Each of its 358 employees supports ₹2.26 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.26 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -11.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -21% while net margin moved -133% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-21%

Margin effect-133%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 96.9 points over the period

Quality vs. Valuation

Company Quality

22/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 62.2% to -34.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 29.0% to -11.7% — often a sign of competition or overexpansion.

Red Flags

8 items require attention · 5 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 2.19x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -24.3x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴The company is lossmakingFinancial
Net profit of -₹64 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.0 points, from 0.6% to -8.4%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -26.4x to -24.3x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.71 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 0.6% to -8.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.19x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 62.2% to -34.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -10%✓ -8.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -24.3x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -11.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 2 neutral · 7 weak

Market Cap

₹52 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.28x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-45.86

Loss-making

Negative earnings per share — the business is losing money

ROE

-34.7%

Weak

Weak capital efficiency

ROCE

-11.7%

Weak

Low return on total capital employed

Debt/Equity

2.19x

High

High leverage

Revenue Growth (YoY)

-43.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

11.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-8.1%

Weak

Thin margins leave little room for error

Net Margin

-10.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.71

Tight

Tight short-term liquidity

Beta (vs Nifty)

-1.01

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

30.7 / 29.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,022 Cr	₹977 Cr	₹868 Cr	₹808 Cr	-7.5%
EBITDA	₹6 Cr	-₹37 Cr	-₹49 Cr	-₹68 Cr	—
EBITDA Margin	0.6%	-3.7%	-5.6%	-8.4%	—
PAT (Net Profit)	₹246 Cr	-₹49 Cr	-₹73 Cr	-₹64 Cr	—
EPS	₹148.48	₹-29.67	₹-44.08	₹-39.08	—
ROE	62.2%	-14.3%	-29.0%	-34.7%	—
ROCE	29.0%	-7.6%	-13.9%	-11.7%	—
Total Debt	₹377 Cr	₹335 Cr	₹372 Cr	₹406 Cr	+2.5%
Free Cash Flow	₹335 Cr	₹12 Cr	₹25 Cr	-₹7 Cr	—

🔴 Revenue has shrunk at 7.5% a year over 3 years.

🔴 EBITDA has turned negative, from ₹6 Cr to -₹68 Cr.

🔴 EBITDA Margin has fallen from 0.6% to -8.4% over 3 years (-9.0 pts).

🔴 PAT (Net Profit) has turned negative, from ₹246 Cr to -₹64 Cr.

🔴 EPS has turned negative, from ₹148.48 to ₹-39.08.

🔴 ROE has fallen from 62.2% to -34.7% over 3 years (-96.9 pts).

🔴 ROCE has fallen from 29.0% to -11.7% over 3 years (-40.7 pts).

🔴 Total Debt has grown at 2.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹335 Cr to -₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹806 Cr

Total Liabilities

₹620 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

10.1%

Insider Holding

66.5%

Corporate Actions

Ex-Dividend Date

20 Sept 2012

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

3 mixed3 general

Tulsyan NEC Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Tulsyan NEC uploads 79th AGM video recording to website

scanx.trade, 19 Sept

Tulsyan NEC Q1 FY27 Results: Revenue Rs 146 Cr, Net Loss Rs 21 Cr and Key Highlights

Univest, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Tulsyan NEC Q1 Results: Net loss widens to ₹308 crore as plant shuts

scanx.trade, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Exicom Tele-Systems reports consolidated net loss of Rs 73.57 crore in the June 2026 quarter

Business Standard, 10 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Tulsyan NEC AGM resolutions pass with near-unanimous shareholder support

scanx.trade, 19 Sept

Watch Items

Revenue growth is negative (-43.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑