INSUBCONTINENT EXCLUSIVE:
An ocean of green till the beginning of 2018, Dalal Street has turned into a sea of red over the past six months, with nearly 90 per cent of
midcap and smallcap stocks tumbling up to 95 per cent
Corporate governance issues, slower-than-expected earnings growth, valuation concerns and global as well as local macroeconomic headwinds
have mainly dragged these second-rung stocks.
Some market veterans say most of the midcaps and smallcaps are still trading at a premium,
while others are already advising investors to start bottom fishing in quality names
The midcap index must be trading at a 19-20 per cent premium to the Nifty
I feel there could be more pain in midcaps and smallcaps, where a lot of the stock movements were sentiment-driven rather than backed by
Some popular names from these segments such as Vakrangee and PC Jeweller are down 86 per cent and 71 per cent, respectively, for this
These stocks had rallied up to 96 per cent during the second half of the previous calendar.
Vakrangee has taken a beating after Price
PC Jeweller, once a darling of foreign investors on Dalal Street, has been on a roller-coaster ride on one or the other reasons, even since
a company promoter gifted some shares to some undisclosed relatives
Reliance Communications and Parsvnath Developers have dipped more than 60 per cent this year
becoming the latest foreign operator to exit the troubled Indian telecom market after burning some $4 billion of its investments
Net loss of Parsvnath Developers widened to Rs 29.95 in Q4 of FY18 against Rs 18.13 crore posted for Q4 of FY17.
Crisis-hit Unitech, which
impressed investors in 2017, is down more than 60 per cent on a year-to-date basis till June 27 on debt woes
The company on June 12 reported a consolidated net loss of nearly Rs 1,000 crore for the quarter ended March 31, 2018, despite higher
income.
Rain Industries, once a multibagger, is down 50 per cent for 2018, whereas DCM Shriram and 8K Miles have lost 49 per cent and 47 per
cent, respectively.
The Rain Industries management recently highlighted continued strong demand outlook for carbon products, given the
Gandhimathi Appliances (down 42 per cent) and Prabhat Dairy (down 41 per cent) have also fallen out of favour this calendar
Butterfly Gandhimathi Appliances had surged nearly 200 per cent in the second half of last calendar
Shares of basmati rice-exporting firm KRBL recently came under pressure amid concerns over its alleged involvement in the Agusta Westland
helicopter scam.
Deepak Fertilisers, Aptech, Hindustan Copper, Binani Industries, Kolte Patil Developers, Future Consumer, 63 Moons,
Wockhardt, MOIL, NCC, Liberty Shoes, Indraprastha Gas, Dilip Buildcon and Prakash Industries are some of the other stocks on the list, which
have plunged more than 25 per cent this year.
All of these companies delivered handsome returns to investors last year.
Dilip Buildcon hit
the lower circuit for the third straight session on June 28.
Some names have stood apart and are still rising
Excel Industries, Merck, Indiabulls Ventures, Firstsource Solutions, V-Mart Retail, Infinite Computer Solutions and NIIT Technologies have
