Mayhem in Videocon counter continues

Videocon Industries was locked at 10% lower circuit at Rs 58.35 at 14:56 IST on BSE, with the stock extending recent sharp sell-off triggered by the company's debt woes.

Meanwhile, the S&P BSE Sensex was down 88 points or 0.29% at 30,277.25.

On the BSE, 49,000 shares were traded on the counter so far as against the average daily volumes of 32,497 shares in the past one quarter. The stock's current market price of Rs 58.35 is also its 52-week low.

The stock had hit a 52-week high of Rs 114.90 on 6 October 2016. It had underperformed the market over the past one month till 23 May 2017, sliding 37.48% compared with the Sensex's 3.41% rise. The scrip had also underperformed the market over the past one quarter, declining 37.39% as against the Sensex's 5.1% rise.

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

Shares of Videocon Industries have tumbled 41.91% in three trading sessions to its ruling market price, from its closing of Rs 100.45 on 19 May 2017. The recent sell-off has been triggered by media reports of escalating debt woes of the company after Dena Bank classified it as a bad loan in its Q4 March 2017 results.

Videocon was a potential non-performing asset (NPA) candidate as per the buzz. Now with Dena Bank biting the bullet, other public and private sector lenders may also have to follow suit creating a crater in some bank books, report added.

Meanwhile, Videocon issued a clarification to the stock exchanges after market hours yesterday, 23 May 2017. The company said that Dena Bank has recently announced that it had classified Videocon's loan amounting to Rs 520 crore as a NPA. This has resulted into some negative publicity of the company and, accordingly, impacted its stock price, it added.

Videocon Industries is set to announce Q1 March 2017 results on Friday, 26 May 2017. The company reported net loss of Rs 509.78 crore in Q4 December 2016, much higher than net loss of Rs 84.42 crore in Q4 December 2015. Net sales fell 32.6% to Rs 2079.43 crore in Q4 December 2016 over Q4 December 2015.

Videocon Industries operates in four segments: consumer electronics and home appliances, crude oil and natural gas, telecommunications and power.

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