Videocon shares tumble 47.7% in four sessions

Videocon Industries was locked at 10% lower circuit at Rs 52.55 at 9:52 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 up 107.92 points or 0.36% at 30,409.56. The S&P BSE Small-Cap index was up 86.06 points or 0.59% at 14,642.63.

On the BSE, 23,000 shares were traded on the counter so far as against the average daily volumes of 32,793 shares in the past one quarter. The stock opened with a downward gap and remained locked at 10% lower circuit level at Rs 52.55 so far during the day, which is a 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 24 May 2017, sliding 43.89% compared with the Sensex's 2.18% rise. The scrip had also underperformed the market over the past one quarter, declining 43.62% as against the Sensex's 4.88% 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 47.7% in four 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.

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 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.

Videocon Industries is set to announce Q1 March 2017 results tomorrow, 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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