Weighed down by poor June quarter earnings, shares of YES Bank, ITC, Cipla, Britannia Industries, and Tata Steel from the Nifty50 index hit their respective fresh 52-week lows intra-day on Tuesday.
From the Nifty 200 index, Bharat Heavy Electricals (BHEL), Bosch, BSE, Steel Authority of India (SAIL), Vodafone Idea, Sun TV Network, National Aluminum, Tata Chemicals and Tata Power touched 52-week lows today.
Among individual stocks, BHEL, the top loser among the pack, was down nearly 11 per cent to Rs 51, after reporting a first quarterly loss in the past three-and-half years. The state-owned company posted a consolidated net loss of Rs 219 crore in April-June quarter (Q1FY20), due to lower operational income. It had net profit of Rs 40 crore in a year ago quarter. Total operational revenue down 24 per cent to Rs 4,532 crore against Rs 5,942 crore in the corresponding quarter of previous fiscal.
YES Bank, too, slipped 11 per cent to Rs 73, plunging 18 per cent in the past two trading days, after closure of qualified institutional placement (QIP) issue. The private sector lender's stock was trading at its lowest level since March 2014. A committee of YES Bank will meet on Wednesday, August 14, to consider and approve the issue price and final discount.
Last week, global rating agency Moody's extended its review for downgrade of YES Bank’s Ba1 long-term foreign-currency issuer rating.
Moody's expects YES Bank to remain dependent on external capital raising to help maintain its capital level above the regulatory requirements. "Any inability of the bank to raise equity capital over the next 1-2 quarters will add significant pressure to its ratings. The review will also focus on developments in the watchlist portfolio, including the potential for resolution or slippage of some key exposures," it said.
Britannia Industries dipped 4 per cent to Rs 2,491 on the NSE after the fast moving consumer goods company reported lower than expected Q1FY20 earnings. The brokerages firm expects earnings growth to be muted in FY20E, due to the slowdown, inflation and high ad spend on new products.
The slowdown in the Biscuits category (which contributes over 80 per cent to sales for Britannia) in Q1FY20, is expected to impact Britannia's growth (recovery appears unlikely soon), according to analysts at Motilal Oswal Securities.
Analysts at Prabhudas Lilladher cut EPS estimates for FY20 and FY21 by 3.5 per cent and 5.2 per cent, respectively, and remain cautious led by slower category growth (around 1-2 per cent) and expected revival only on festive season.
|LATEST||52 WK LOW||PREV LOW||PREV DATE|
|B H E L||50.70||50.40||54.60||05-Aug-19|
|S A I L||36.20||35.80||37.70||08-Aug-19|
|SUN TV NETWORK||422.20||420.75||438.05||06-Aug-19|
|TATA POWER CO.||56.25||56.00||56.75||09-Aug-19|