Analysts drop coverage on stocks of firms with high debt, biz uncertainty

More than a third of stocks in top 500 have witnessed reduced coverage

Analysts are dropping coverage on stocks of companies which are facing business uncertainty, heavy debt, and governance issues. According to the data compiled by Bloomberg, over a third of the top 500 companies have seen a reduction in the number of analysts covering the stock. Some of the firms that have witnessed major drop include Dish TV, YES Bank, and JSW Energy.

Industry players said analysts typically drop coverage of a stock when it becomes difficult to make earnings projections following a dramatic change in fortunes for the worse of the covered firm.

Companies in the non-banking financial, telecom and other capital-intensive