Tata Motors, Bharti Airtel, Coal India, Hindalco hit fresh 52-week low

Four stocks from the S&P BSE Sensex - Tata Motors, Bharti Airtel, Coal India and Hindalco Industries - have touched their respective 52-week low on the Bombay Stock Exchange (BSE) today.

Tata Motors has dipped 6% to Rs 286, its fresh 52-week low on the BSE. In past six trading days, the stock has lost 15% from Rs 338 on September 16, after Tata Steel, the promoter group company had sold part of its stake in the company through open market.

On September 18, Tata Steel sold 38.5 million shares or 1.3% stake of Tata Motors on the stock exchange for a total consideration of Rs 1,251 crore, the company said in a filing to the BSE. These shares were offered at Rs 324.68 apiece. Tata Steel owned 5.54% stake in Tata Motors at the end of June 2015 quarter.

Bharti Airtel too touched a 52-week low of Rs 331 on the BSE in intra-day trade. In past two months, the stock has underperformed the market by falling 19% from Rs 410 on July 28, on concerns that the recent Indian rupee depreciation and sustenance of the same will have implications on the telecom companies. The S&P BSE Sensex dipped 6% during the same period.

“Given that nearly 60% capex is billed in US dollar, Indian rupee depreciation will impact cash flows of both Bharti and Idea. Sustenance of Indian rupee at Rs 65-67/USD going forward would increase capex spend of Bharti and Idea by 3%/6% for FY16/17E,” Naval Seth and Ashish Agrawal analysts at Emkay Research said in a recent report.

Larger impact will be on Bharti, given higher exposure in foreign debt and exposure to various African currencies. Devaluation of Nigerian NIARA would add pain to Bharti's financials, analysts said in a report dated August 24, 2015.

Meanwhile, Bharti Airtel in the annual report said that the company’s consolidated operating free cash flow for the financial year 2014-15 declined by 25.9% from Rs 17,259 crore to Rs 12,783 crore, primarily on account of stepped up capex in India and Africa.

The company’s consolidated net debt as on March 31, 2015 increased by US $606 million to US $ 10,679 million as compared to US $ 10,074 million last year, mainly due to the Department of  Telecommunications (DoT) spectrum obligations. The net debt-equity ratio marginally increased to 1.08 times as on March 31, 2015, compared to 1.01 times in the previous year, it added.

Coal India was trading lower by 3% at Rs 310, after hitting a fresh 52-week low of Rs 309 on the BSE in early morning trade. Since August 5, the stock slipped 31% from its 52-week high of Rs 447 against 8% fall in the benchmark index.

According to Business Standard reports, senior Coal India officials said states have started asking its subsidiaries to stop coal supply, as they cannot clear their past dues and pay for more coal.

Rajasthan and Madhya Pradesh, for instance, have said they cannot lift any more coal, given their past dues, low power demand, and weak purchasing power, added report. CLICK HERE TO READ FULL REPORT.