 "Eicher Motors, Ashok Leyland, Dena Bank hit 52-week lows")
Shares of Eicher Motors, Ashok Leyland and Dena Bank continued to remainunder pressure, hitting their respective 52-week lows on the BSE on Monday in an otherwise firm market.
Dena Bank slipped 5 per cent to Rs 13.65, falling 24 per cent in past three trading sessions following an unfavorable share-swap ratio on the merger with Bank of Baroda (BOB). The stock was trading at its lowest level since April 30, 2003.
The boards of the banks met to approve the swap ratios on Wednesday. For every 1,000 equity shares of Dena Bank investors will get 110 equity shares of BOB, according to a BSE notification.
“We believe that the share swap ratios are favorable to BOB shareholders and imply a discount of around 27 per cent to Dena Bank and around 6 per cent to Vijaya Bank based on the closing price of January 2, 2019. Based on the price on the day of the merger announcement, the proposed swap ratios imply a discount of around 30 per cent/around 11 per cent to Dena Bank/Vijaya Bank,” Motilal Oswal Securities said in an update.
While the swap ratio appears fair in respect to Dena Bank owing to the multiple challenges faced by the bank, we believe Vijaya Bank shareholders have nothing to gain from this merger, it added.
Eicher Motors dipped 1.6 per cent to Rs 19,810, declining 15 per cent in four trading days, after Royal Enfield (RE) reported a weak set of numbers for the month of December 2018.
The company reported a 13 per cent year-on-year (Y-o-Y) decline in total sales at 58,278 units in December 2018. It had sold 66,968 motorcycles during the same month last year. On a month-on-month basis, the volume declined by 11 per cent. It sold 65,744 motorcycles in November 2018.
“This was the first month of no one-offs, as there have been multiple external factors influencing demand-supply since July 18. RE indicated broad-based weakness, but the magnitude of weakness has been a negative surprise. This weakness in demand might continue in near future, considering the substantial increase in cost of ownership (insurance, rear disc brake and ABS related) and Jawa has emerged as a reasonable alternative for potential RE customers,” analysts at Motilal Oswal Securities said in sector update.
Ashok Leyland was trading at its lowest level since June 30, 2017, down 4 per cent to Rs 93.30 on the BSE in intra-day trade today. The stock skidding 7 per cent in past three trading days, after the company for the second time in the calendar year reported dismal set of numbers. Ashok Leyland posted 20 per cent Y-oY decline in its monthly sales of 15,493 units during the month of December. This de-growth was mainly on account of the higher base. Despite the dismal set of numbers, LCV segment manage to report 27 per cent growth on a yearly basis.
Dena Bank slipped 5 per cent to Rs 13.65, falling 24 per cent in past three trading sessions following an unfavorable share-swap ratio on the merger with Bank of Baroda (BOB). The stock was trading at its lowest level since April 30, 2003.
The boards of the banks met to approve the swap ratios on Wednesday. For every 1,000 equity shares of Dena Bank investors will get 110 equity shares of BOB, according to a BSE notification.
“We believe that the share swap ratios are favorable to BOB shareholders and imply a discount of around 27 per cent to Dena Bank and around 6 per cent to Vijaya Bank based on the closing price of January 2, 2019. Based on the price on the day of the merger announcement, the proposed swap ratios imply a discount of around 30 per cent/around 11 per cent to Dena Bank/Vijaya Bank,” Motilal Oswal Securities said in an update.
While the swap ratio appears fair in respect to Dena Bank owing to the multiple challenges faced by the bank, we believe Vijaya Bank shareholders have nothing to gain from this merger, it added.
Eicher Motors dipped 1.6 per cent to Rs 19,810, declining 15 per cent in four trading days, after Royal Enfield (RE) reported a weak set of numbers for the month of December 2018.
The company reported a 13 per cent year-on-year (Y-o-Y) decline in total sales at 58,278 units in December 2018. It had sold 66,968 motorcycles during the same month last year. On a month-on-month basis, the volume declined by 11 per cent. It sold 65,744 motorcycles in November 2018.
“This was the first month of no one-offs, as there have been multiple external factors influencing demand-supply since July 18. RE indicated broad-based weakness, but the magnitude of weakness has been a negative surprise. This weakness in demand might continue in near future, considering the substantial increase in cost of ownership (insurance, rear disc brake and ABS related) and Jawa has emerged as a reasonable alternative for potential RE customers,” analysts at Motilal Oswal Securities said in sector update.
Ashok Leyland was trading at its lowest level since June 30, 2017, down 4 per cent to Rs 93.30 on the BSE in intra-day trade today. The stock skidding 7 per cent in past three trading days, after the company for the second time in the calendar year reported dismal set of numbers. Ashok Leyland posted 20 per cent Y-oY decline in its monthly sales of 15,493 units during the month of December. This de-growth was mainly on account of the higher base. Despite the dismal set of numbers, LCV segment manage to report 27 per cent growth on a yearly basis.
| COMPANY | LATEST | 52 WK LOW | PREV LOW | PREV DATE |
| AMTEK AUTO | 3.11 | 3.11 | 3.25 | 31-Dec-18 |
| ASHOK LEYLAND | 93.50 | 93.30 | 95.95 | 04-Jan-19 |
| ASIAN GRANITO | 154.65 | 150.10 | 156.05 | 09-Oct-18 |
| BHARAT FORGE | 479.60 | 470.00 | 483.85 | 04-Jan-19 |
| DENA BANK | 13.75 | 13.65 | 13.75 | 16-Jul-18 |
| EICHER MOTORS | 19780.00 | 19755.00 | 20030.15 | 04-Jan-19 |
| FUTURE ENT. DVR | 36.50 | 29.20 | 31.50 | 01-Oct-18 |
| HEALTH.GLOBAL | 186.95 | 183.00 | 185.80 | 04-Jan-19 |
| HIND.COMPOSITES | 281.00 | 281.00 | 284.00 | 04-Jan-19 |
| ISGEC HEAVY | 5050.00 | 4906.00 | 4941.00 | 04-Jan-19 |
| K P R MILL LTD | 539.95 | 538.45 | 545.00 | 04-Jan-19 |
| LEEL ELECTRICALS | 53.85 | 53.60 | 54.00 | 10-Dec-18 |
| MCLEOD RUSSEL | 111.50 | 111.50 | 112.10 | 04-Jan-19 |
| NARAYANA HRUDAYA | 195.20 | 187.00 | 187.25 | 04-Jan-19 |
| RELIGARE ENTERP. | 27.90 | 27.90 | 28.50 | 03-Dec-18 |
| ROLTA INDIA | 7.93 | 7.40 | 7.53 | 04-Jan-19 |
| RUBFILA INTL. | 40.00 | 39.60 | 39.90 | 04-Jan-19 |
| SUNDARAM CLAYTON | 3435.00 | 3400.00 | 3400.00 | 07-Dec-18 |
| THE BYKE HOSPI. | 63.50 | 63.05 | 64.30 | 28-Dec-18 |
| TPL PLASTECH | 148.00 | 145.00 | 145.00 | 04-Jan-19 |
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