Amtek Auto, group stocks on crash mode as investors run riot on lingering woes

Shares of Amtek Auto and its other listed group entities continued to take pounding on the bourses, as a host of negative factors ranging from the parent firm’s disappointing earnings performance and rising debt to its impending exit from the Future & Options (F&O) category triggered massive offloading of shares in early trade. Extending losses for fourth straight session, Amtek Auto shares plunged to its 52-week low of Rs 50.70, down 43 percent before recovering to trade lower but off its lows. [caption id=“attachment_2400096” align=“alignleft” width=“380”]  Reuters[/caption] At 10.15 am, Amtek Auto shares were traded at Rs 63.60, down nearly 29 percent from previous close. Nearly 54 lakh shares changed hands on BSE so far against two week average volume of 7.8 lakh shares. Including today’s low, Amtek Auto stock has crashed 74 percent in two sessions and 91 percent in the month so far. On the earnings front, the company reported a massive loss of Rs 157.60 crore in the April-June quarter of 2015 as against net profit of Rs 85 crore in the corresponding quarter a year ago. Its net sales fell 12.7 percent on-year to Rs 854 crore. According to a CNBC-TV18 report, Amtek Auto and its subsidiary Castex Technologies are staring at a $70 million FCCB issue, which it is required to pay its bond holders. The company’s managing director Gautam Malhotra tried to allay fears and said it will look to reduce debt by up to Rs 2,000 crore in next two years and would consider various options. To make matter worse, the company was excluded from the trade in Future & Options (F&O) from November Series. In the wake of growing nervousness, investors also hammered other listed group entities. Among the laggards, shares of Metalyst Forgings tumbled 7.6 percent to Rs 75.50, after hitting a 1-year low of Rs 73.60. Similarly, JMT Auto was locked at the lower limit of circuit breaker at Rs 111.20, down nearly 5 percent, while Castex Technologies, too, was locked at the lower circuit breaker at Rs 86.45, down nearly 5 percent from previous close. Lastly, Rollatainers stock, too, was down nearly 5 percent at Rs 105.80 on BSE.