Videocon Inds slumps about 67% in 12 sessions

Videocon Industries hit a lower circuit limit of 5% at Rs 33.25 at 11:15 IST on BSE, extending recent steep losses.

Meanwhile, the S&P BSE Sensex was down 48.29 points, or 0.15% to 31,261.20.

On the BSE, 26,000 shares were traded in the counter so far, compared with average daily volumes of 35,863 shares in the past one quarter. The stock opened with an downward gap of 5% at Rs 33.25 and remained stuck at that level so far, which is also its 52-week low level. The stock hit a 52-week high of Rs 114.90 on 6 October 2016.

The stock had underperformed the market over the past one month till 5 June 2017, falling 66.10% compared with 4.86% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 66.26% as against Sensex's 7.97% rise. The scrip had also underperformed the market in past one year, falling 66.36% as against Sensex's 16.92% 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 fallen 66.90% in the preceding 12 trading sessions from its close of Rs 100.45 on 19 May 2017.

The recent sell-off in the stock has been triggered by media reports of escalating debt woes of the company. As per reports, Central Bank of India declared the company as a non-performing asset (NPA) in Q1 June 2017. Central Bank of India has one of the highest exposures to Videocon at Rs 2700 crore, reports added. Other banks are likely to soon follow suit in declaring the account as a bad loan or an NPA.

Dena Bank had 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, the company recently clarified to the bourses on 23 May 2017.

Videocon Industries reported net loss of Rs 547.73 crore in Q4 March 2017 as against net loss of Rs 189.59 crore in Q4 March 2016. Net sales declined 28.26% to Rs 1985.85 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours on Friday, 26 May 2017.

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

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