Infrastructure, realty stocks: Biggest losers of BSE 100

The sharp fall in equity markets over the past one year has crushed the returns on several stocks.A weak financial performance, coupled with foreign investors selling shares, has led to a steep double-digit fall in many frontline stocks.

Firstpost decided to analyse companies whose shares have fallen by more than 50 percent and have declared their September-ending quarter results. However, in order to ensure that we are tracking only financially sound companies, we have restricted our universe to the BSE-100 index.

Here is the list:

[caption id=“attachment_131285” align=“alignleft” width=“380” caption=“A weak financial performance, coupled with foreign investors selling shares, has led to a steep double-digit fall in many frontline stocks. Reuters”]  [/caption]

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•Unitech bags the title of biggest loser as its shares crashed almost 70 percent in the past one year. This is not surprising considering the fact the company’s profits have been falling since the past five quarters. For the September-ending quarter, the company reported a steep 47 percent fall in net profit due to higher input costs.

However, a reduction in debt of almost Rs 191 crore during the quarter is a positive development for the company. According to Business Standard, the company plans to reduce debt levels by almost Rs 500 crore by the end of March 2012 by selling non-core assets. In September, the company also hit the headlines after shareholders rejected a proposal by the company to pay dividends totalling about Rs 30 crore. The stock is currently trading at Rs 25.

•Housing Development & Infrastructure Ltd **(HDIL)**came second in out list as its stock plunged 65 percent. For the September-ending quarter, net profits declined by 24 percent to Rs 148.5 crore due to a fall in TDR (transfer of development rights) sales and depressed FSI sales. IIFL Institutional Equitieshas a ‘reduce’ rating on the company with a target price of Rs 95 per share. The stock is currently trading at Rs 80.9. The brokerage said that HDIL’s “cash collection is deteriorating across ongoing projects " and that “the proposed 15 percent hike increase across existing projects would hurt sales volumes”.

•Crompton Greaveshas been in the bad books of shareholders in recent months after it used its spare cash to purchase an aircraft, which it then termed as an investment. Its financial performance has also been shaky over the past few quarters: in the September-ending quarter, net profit fell by 45 percent. Foreign investor holdings also decreased to 15.72 percent at the end of September from 21.37 percent at the end of June. No wonder then that investors have lost their enthusiasm in this stock which has fallen by almost 59 percent.

•GMR Infrastructure continued on its loss-making trend, incurring losses of Rs 62.5 crore for the September-ending quarter, while revenues rose by 48 percent. This was the fourth consecutive quarter of the company posting a loss. However, Emkay maintains its ‘buy’ rating on the company with a price target of Rs 38 per share vis-a-vis its current market price of Rs 24 per share, reflecting a growth of almost 58 percent.

[caption id=“attachment_131257” align=“alignleft” width=“539” caption=“BSE 100’s biggest losers. Source:Ace Equity”]  [/caption]