BSE Smallcap index nears one-year low; 130 stocks hit 52-week lows

The BSE SmallCap index is just 58 points away from its 52-week low of 13,397 touched on October 9, 2018 in the intra-day trade. In the past one month, the small index slipped 8 per cent, as compared to a 7 per cent decline in the S&P BSE MidCap and 1 per cent gain in the benchmark S&P BSE Sensex.

As many as 130 stocks out of 865 stocks from S&P BSE Smallcap index hit 52-week lows on the BSE in intra-day trade today. The list includes Graphite India, Hindustan Copper, Himatsingka Seide, LT Foods, MMTC, Tata Coffee, Uflex, VST Tillers Tractors, Andhra Bank and Dena Bank.

Graphite India, NACL Industries, Mirza International, PC Jeweller, Thyrocare, Nadan Denim, KRBL, VIP Industries and Shalimar Paints were down more than 7 per cent each today, after posting a weak set of numbers for the quarter ended December 2018 (Q3FY19).

NACL Industries, the top loser among index, slipped 12 per cent at Rs 29.55, after the company reported 28 per cent fall in operating profit at Rs 9.55 crore in Q3FY19. Ebitda (earnings before interest, taxation, depreciation and ammortisation) margin declined to 4.88 per cent from 7.2 per cent.

The company said reduction in the margins was mainly on account of lower volumes of domestic sales coupled with higher input costs and inadequate availability of raw-materials. The raw-material supply from China continues to be an area of concern, it added.

Shares of Graphite India hit a 14-month low of Rs 436, down 10 per cent on Monday, extending its 6 per cent decline in the past two trading days on BSE, after reporting subdued results for Q3FY19.

Graphite India reported a consolidated net profit of Rs 764 crore (up 113 per cent YoY, down 31 per cent QoQ). Revenue was at Rs 1,855 crore (up 81 per cent YoY, down 21 per cent QoQ). Ebitda (earnings before interest, taxation, depreciation and ammortisation) margin was down 100 basis points, sequentially at 62 per cent.

The performance during the quarter was impacted by higher-than-expected operating costs (especially needle coke) and lower-than-expected volumes. Graphite India said the price realisation have remained flat while volumes declined from last quarter. The increase in needle coke costs has impacted margins.

Meanwhile, a total of 504 companies, excluding banks and financials, from the smallcap index have, thus far, announced their Q3FY19 results so far. They have posted a 25 per cent decline in the aggregate net profit as the combined net profit of these 504 firms stood at Rs 11,118 crore in Q3FY19 against Rs 14,818 crore in Q3FY18.