Shares of Ashok Leyland, Mahindra & Mahindra (M&M), Edelweiss Financial Services, BASF India, Finolex Cables, Natco Pharma and Rallis India were among 39 stocks from the S&P BSE 500 index that hit their respective 52-week lows on the BSE in intra-day trade on Wednesday.
Aditya Birla Capital, CG Power and Industrial Solutions, Cochin Shipyard, Gujarat Pipavav Port, Jain Irrigation Systems, Philips Carbon Black, Uflex and TV Today Network too hit 52-week lows today.
CG Power and Industrial Solutions was the largest loser among the pack, falling 25 per cent to Rs 25.35 on the BSE in intra-day trade, after the company reported a consolidated net loss of Rs 150 crore in December 2018 quarter (Q3FY19). The performance impacted mainly on account of an exceptional loss of Rs 117 crore. The Gautam Thapar-led Avantha Group company had posted a loss of Rs 28 crore in the year-ago quarter.
For the quarter ended December 31, 2018, includes foreign exchange loss of Rs 22.64 crore, gain on curtailment of gratuity liability due to change in scheme of Rs 14 crore, provision for certain receivables of Rs 108 crore where the management believes that the recoveries are uncertain.
Meanwhile, the board of directors of the company at its meeting held on Tuesday, February 12, 2019, approved a part settlement of outstanding loans against 50 per cent of brand loyalty payable by the company in perpetuity aggregating to Rs 411 crore, and accepted re-schedulement of the balance loan to be settled by May 2019. Consequently, the company’s liability towards brand royalty stands reduced to 0.50 per cent from the contracted royalty of 1 per cent of its consolidated revenue.
CG Power and Industrial Solutions have outstanding loans given by a wholly owned subsidiary amounting to Rs 730 crore as on December 31, 2018, the company said in notes on consolidated financial results.
Edelweiss Financial Services slipped 12 per cent to Rs 116, extending its 6 per cent decline in the past four trading days.
Anil Dhirubhai Ambani Group (ADAG) company Reliance Power asked the Securities and Exchange Board of India (Sebi) to prohibit the Mumbai-based Edelweiss financial services group from trading in the securities market.
“Edelweiss Group had granted credit facilities against pledge of shares to Reliance ADAG Group. Over the last several months, Edelweiss Group has reached out numerous times to Reliance ADAG Group to address concerns on shortfall in margins (via regular margin call notices) and resultant fall in collateral valuation. Despite our best efforts, not only did Reliance ADAG Group fail to address any of the concerns raised by Edelweiss Group, but also continued to breach contractual obligations,” Edelweiss Financial Services said in a press release dated February 8, 2019.
M&M hit a fresh 52-week low of Rs 638, falling 9 per cent in past four days, after the management revised its tractor volume guidance lower to 10 per cent from earlier lower band of 12-14 per cent. It also expects FY20 tractor growth to be in single digits.
M&M said the de-growth in the MHCV industry is primarily due to the implementation of new axle loading norms, which has created surplus capacity in the short term, resulting in reduction or temporary suspension of fleet purchase plans by transporters. Passenger vehicle sales for the festive season (September + October + November) were not up to industry expectation primarily due to softening of urban demand. The urban sentiment was subdued largely on account of an uncertain economic scenario arising from the dollar rate movement, fuel prices and stock market performance.
Ashok Leyland down 2 per cent to Rs 79.25 ahead of the board meeting on Thursday to consider unaudited financial results of the company for the quarter ended December 31, 2018. Thus far in calendar year 2019, the stock skid 23 per cent, against 0.50 per cent rise in Sensex, on growth concerns.
“Ashok Leyland reported a 6 per cent year-on-year (YoY) dip in volumes this quarter owing to base impact along with the liquidity crunch in the segment. Anticipating realisations also to decline by 3 per cent YoY, we expect revenues to degrow by 9 per cent YoY and margins to contract by 110bps YoY (lower 160bps QoQ) on account of commodity cost pressures,” the brokerage firm Prabhudas Lilladher said in earnings preview.
Motilal Oswal Securities removed Ashok Leyland from the portfolio, given the constrained availability of finance, continued shift toward lower-tonnage vehicles (due to an increase in axle load) and a high base. This will lead to subdued volumes over the next few quarters. Also, FY21 demand remains uncertain due to the impact of pre-buy in FY20.
The resignation of Mr. Dasari, managing director, brings in uncertainty about continuity of the business plan, which would influence near-term stock performance till a new MD is appointed, the brokerage firm said in Q3FY19 result preview.
|COMPANY||LATEST||52 WK LOW||PREV LOW||PREV DATE|
|ADITYA BIRLA CAP||78.85||78.80||79.05||11-Feb-19|
|C P C L||212.60||212.60||213.15||11-Feb-19|
|CG POWER & INDU.||25.55||25.35||30.00||06-Feb-19|
|GUJ PIPAVAV PORT||79.55||78.75||78.85||12-Feb-19|
|H U D C O||38.20||38.15||38.60||12-Feb-19|
|JAMNA AUTO INDS.||50.00||49.95||50.30||12-Feb-19|
|M & M||644.05||637.55||644.15||11-Feb-19|
|NAVA BHARAT VENT||97.60||97.20||99.75||12-Feb-19|
|O N G C||135.00||134.60||134.75||11-Dec-18|
|T.V. TODAY NETW.||322.00||305.15||311.10||12-Feb-19|