UB Group stocks lose up to 76% value in 2013

UB Group Chairman Vijay Mallya may be confident of 'good times' ahead for his various businesses, but the market values of at least five group companies have fallen by up to 76% so far in 2013.

An analysis of share price performance of UB group companies shows that the holding firm United Breweries (Holdings) Ltd has seen its market value plunge by 76% to Rs 27.7 currently, from Rs 115.85 as on December 31, 2012.

During the same period, Kingfisher Airlines' share price has plummeted by about 69% from nearly Rs 15 to Rs 4.67, as the airline has remained grounded for almost a year.

The market value loss for UB Engineering, a relatively smaller company, has also been similar at about 69% from Rs 37.5 to Rs 11.49 a share, while McDowell Holdings has seen its share price fall by 72% from Rs 75.45 to Rs 21.45.

The loss has been smallest for United Breweries Ltd at about 7% from Rs 931.2 at the end of 2012 to Rs 863.90 at the end of last trading session on September 13, 2013.

United Spirits, Mangalore Chemicals & Fertilizers and Pioneer Distilleris have seen their share prices actually rise during this time period.

However, the gains for two of these firms -- United Spirits and Pioneer Distilleries -- have been on the back of global liquor major Diageo acquiring shares, while Mangalore Chemicals has seen two of its rivals buying significant chunks of stakes from the open market.

Mangalore Chemicals' share price has appreciated by about 45% so far in 2013, while gains for United Spirits and Pioneer Distilleries have been 33% and 12%, respectively.

The market benchmark index Sensex has remained largely flat with a gain of 0.77% for this period.

Striking a confident note about the fortunes of his group companies, Mallya last week said at holding company UBHL's Annual General Meeting that the group was in firm control of Mangalore Chemicals and talks were on with potential investors for revival of Kingfisher.

The crisis-hit airline's permit to fly was suspended last year, while it had accumulated losses of over Rs 16,000 crore as on March 31, 2013. It has loans of about Rs 7,000 crore and a negative net worth of close to Rs 13,000 crore.

In terms of market capitalisation, Kingfisher has lost over Rs 800 crore worth market value so far in 2013, while the losses for UBHL and United Breweries are about Rs 600 crore and Rs 1,800 crore respectively.

However, the market value of Mangalore Chemicals has soared by over Rs 200 crore and that of United Spirits has risen by more than Rs 9,000 crore during the same period.

The group's total market valuation currently stands at about Rs 61,000 crore.