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Videocon extends recent rally

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was locked at 5% upper circuit level at Rs 31.95 at 12:48 on BSE, with the stock extending its recent rally.

Meanwhile, the S&P Sensex was up 211.08 points or 0.66% at 32,015.90. The S&P Small-Cap index rose 65.08 points or 0.41% at 15,962.09.

On the BSE, 18,000 shares were traded on the counter so far as against the average daily volumes of 2.73 lakh shares in the past one quarter. The stock opened with an upward gap of 5% and remained locked at that level at Rs 31.95 so far during the day. The stock had hit a 52-week high of Rs 114.90 on 6 October 2016 and a 52-week low of Rs 16.35 on 27 June 2017.

The stock had outperformed the market over the past one month till 12 July 2017, advancing 12.15% compared with the Sensex's 2.28% rise. The stock had, however, underperformed the market over the past one quarter, declining 70.64% as against the Sensex's 7.29% rise. The scrip had also underperformed the market over the past one year, sliding 70.76% as against the Sensex's 14.37% rise.

The small-cap company has equity capital of Rs 334.46 crore. Face value per share is Rs 10.

Shares of have surged 85.75% in thirteen straight trading sessions to its current market price, from its close of Rs 17.20 on 23 June 2017.

Prior to the latest rally, the stock had nosedived a whopping 82.88% in 25 trading sessions in a row to settle at Rs 17.20 on 23 June 2017, from its close of Rs 100.45 on 19 May 2017, on loan repayment default worries.

Last month, reports suggested that the Central Bank of India declared the company as a non-performing asset (NPA) in Q1 June 2017. Central Bank of India has one of the highest exposures to Videocon at Rs 2700 crore, reports added.

Later, Dena Bank had announced that it had classified Videocon's loan amounting to Rs 520 crore as a NPA. Few other banks including Punjab National Bank (PNB) had also followed suit in declaring Videocon's loan as NPA, reports suggested.

Meanwhile, the company had on 6 July 2017 issued a clarification to the stock exchanges with regard to media news titled Videocon Telecom forays into security, surveillance with CCTV camera. stated that its subsidiary Videocon Telecommunication (VTL) keeps evaluating various business opportunities for the purpose of expansion and diversification of its activities and it may consider entry into the security and surveillance with CCTV camera. There is no material impact on the company as VTL has not formally entered/adopted the new business, Videocon said.

Videocon Industries reported loss of Rs 547.73 crore in the quarter ended March 2017, higher than net loss of Rs 189.59 crore in the quarter ended March 2016. Net sales declined 28.3% to Rs 1985.85 crore in the quarter ended March 2017 over the quarter ended March 2016.

Videocon Industries operates in consumer electronics and home appliances, crude oil and natural gas.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 13 2017. 12:51 IST