Unitech spurts on bargain hunting

Unitech jumped 9.77% to Rs 9.55 at 12:55 IST on BSE, with the stock gaining on bargain hunting after plunging 35.27% during the previous trading session.

Meanwhile, the BSE Sensex was down 81.10 points, or 0.3%, to 26,756.10

The stock gained on huge volume. On BSE, so far 3.31 crore shares were traded in the counter, compared with an average volume of 77.31 lakh shares in the past one quarter.

The stock saw high intraday volatility. The stock hit a high of Rs 10 and a low of Rs 8.64 so far during the day. The stock had hit a 52-week low of Rs 6.50 in intraday trade yesterday, 3 June 2015. The stock hit a 52-week high of Rs 38.60 on 10 June 2014.

The stock had underperformed the market over the past one month till 3 June 2015, falling 43.51% compared with 0.64% decline in the Sensex. The scrip also underperformed the market in past one quarter, sliding 56.5% as against Sensex's 9.31% fall.

The small-cap company has an equity capital of Rs 523.26 crore. Face value per share is Rs 2.

After slumping as much as 51.63% at the day's low of Rs 6.50 in intraday trade yesterday, 3 June 2015, the Unitech stock cut losses to settle with loss of 35.27% at Rs 8.70 yesterday, 3 June 2015. The stock tumbled on huge volume of 8.18 crore shares on BSE. The stock had dropped 39.37% in three trading days from its recent high of Rs 14.35 on 29 May 2015.

As per reports, the intraday crash in Unitech was following rumours being spread pertaining to company defaulting on repayments which were reportedly denied by Unitech. Unitech's debt has been stable and is at manageable levels and its debt equity ratio is one of the lowest in the industry at sub 0.6, reports indicated. As per reports, Unitech had a total debt of Rs 3800.65 crore as on 31 March 2015.

On a consolidated basis, Unitech reported net loss of Rs 162.54 crore in Q4 March 2015, higher than net loss of Rs 51.55 crore in Q4 March 2014. Total income fell 1.6% to Rs 1057.89 crore in Q4 March 2015 over Q4 March 2014.

Unitech is one of India's leading real estate player. It has a diversified product mix in real estate comprising of commercial complexes, IT/ITes parks, special economic zones (SEZs), integrated residential developments, schools, hotels, malls, golf courses and amusement parks.

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