Onmobile Global hits new low, stock tanks 18%

The stock tanked 60% in past four months, compared to around 8% fall in the benchmark Sensex

Onmobile Global has tanked 18% to Rs 32.65, also its historic low, on an over ten-fold jump in trading volumes. As many as a combined 13.4 million shares representing 23% of its free-float equity have changed hands on the counter so far, against an average around one million shares that were traded daily in past two weeks.

The stock of the telecom services provider is underperforming the market by plunging 60% in past four months, compared with an 8% fall in the benchmark Sensex.

The company has been facing pressure on its net profit in past couple of quarters. For the fourth quarter ended March 31, 2012, the firm saw its consolidated net profit shrink 82% over the year-ago period and 73%, compared to the previous quarter ended December 31, 2011, to Rs 4.8 crore, despite of rise in the revenues.

 

Foreign institutional investors has reduces its holding in the company to 19.66% in March 2012 quarter, from 23.43% stake in a year ago period.

OnMobile is one of the top VAS companies catering to mobile, landline and media services providers and targets such areas such as mobile entertainment, search & discovery, data services and mobile social networking.