Bhushan Steel tumbles to 52-week low

Bhushan Steel was locked in 20% lower circuit at Rs 304.60 at 12:55 IST on BSE, with the stock resuming fall after a seeing a small recovery on Tuesday, 5 August 2014.

Meanwhile, the BSE Sensex was down 74.18 points, or 0.29%, to 25,833.83

On BSE, so far 1.41 lakh shares were traded in the counter as against an average daily volume of 57,967 shares in the past one quarter.

The stock hit a 52-week low of Rs 304.60 in intraday trade today, 6 August 2014. The stock hit a high of Rs 378 so far during the day. The stock had hit a 52-week high of Rs 504 on 11 November 2013.

The stock had underperformed the market over the past one month till 5 August 2014, falling 5.37% compared with 0.21% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 14.39% as against Sensex's 15.43% rise.

The mid-cap company has an equity capital of Rs 45.30 crore. Face value per share is Rs 2.

Shares of Bhushan Steel had dropped 4.23% to Rs 378.15 on Monday, 4 August 2014, after the Central Bureau of Investigation (CBI) on Saturday, 2 August 2014, arrested the now-suspended Chairman-cum-Managing Director of Syndicate Bank SK Jain after he had allegedly demanded a bribe of Rs 50 lakh from Bhushan Steel to not convert the company's outstanding loan into a Non Performing Asset (NPA). As per reports, Bhushan Steel had taken a loan of Rs 100 crore from Syndicate Bank while Prakash Industries had taken a loan of Rs 120 crore. Both companies were desperate to avoid their loans being declared NPAs for default in repayments. Shares of Bhushan Steel rose 0.69% to Rs 380.75 Tuesday, 5 August 2014.

Meanwhile, CBI Director Ranjit Sinha has reportedly ordered an internal inquiry after his team did not arrest Bhushan Steel vice-chairman Neeraj Singhal during searches at his residence in the Syndicate Bank bribery case, despite clear instructions to pick him up. Neeraj Singhal is on the run from the time of the raid and the CBI has been trying to trace him since, so that he can be arrested, reports added. Neeraj Singhal has filed an anticipatory bail application in a local court which will come for hearing today, 6 August 2014.

Bhushan Steel reported net loss of Rs 19.57 crore in Q4 March 2014 as compared to net profit of Rs 280.21 crore in Q4 March 2013. Net sales fell 10.9% to Rs 2399.73 crore in Q4 March 2014 over Q4 March 2013.

Bhushan Steel is one of the leading prominent player in steel industry. The company is now India's 3rd largest secondary steel producer company with an existing steel production capacity of 2 million tonne per annum (approx.).

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