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Authors: JordanStocks from across sectors, including dozens of popular names, have seen wild swings in their fortunes in 2018.
While more than 85 stocks have rallied over 50 per cent in the first four months of the calendar, some names like PC Jewellers, Vakrangee and Gitanjali Gems have encountered major headwinds and fallen like a pack of cards.
PC Jeweller alone has eroded over Rs 13,000 crore of investor wealth so far this year, whereas Vakrangee wiped out over Rs 35,000 crore between December 29 and May 3.
On Monday, PC Jeweller stock rallied 34 per cent to Rs 234 in morning trade after the company advanced a board meeting to consider share buyback.
Among other big names that have witnessed major wealth erosion are State Bank of India, Bharti Airtel, IndianOil, BPCL, Maruti Suzuki, Tata Motors, PNB, ICICI Bank, Wipro and ONGC, which have together wiped out some Rs 3.91 lakh crore of market capitalisation (m-cap) during this period.
Besides business headwinds, some of these companies have suffered due to rising bad loans, concerns over corporate governance issues and policy changes at the government level.
The total market-cap of all BSE-listed companies is down by nearly Rs 22,000 crore in these four months; falling to Rs 151.52 lakh crore as of May 2, 2018 from Rs 151.74 lakh crore on December 29, 2017.
SBI share price plunged nearly 22 per cent between December 29 and May 2, which shrank its m-cap by Rs 51,366 crore to Rs 2,15,796 crore on May 3 from Rs 2,67,162 crore on December 29.
Bharti Airtel, which reported lowest quarterly profit in nearly 15 years for Q4FY18, has seen its shares slip 24 per cent to Rs 404.40 from Rs 529.40.
This resulted in a Rs 49,968 crore erosion in market capitalisation to Rs 1,61,654 as of May 3 from Rs 2,11,622 on December 29.
Global ratings agency Standard Poor's on May 3 revised down its outlook on Airtel to ‘negative’ from stable, following weak financial performance in FY18 and concerns over elevated capex for this financial year.
Vakrangee shares have lost 78 per cent market value this calendar after a stellar run that saw the stock rise 208 per cent in 2017, 57 per cent in 2016, 40 per cent in 2015, 49 per cent in 2014 and 40 per cent in 2013.
Vakrangee came under pressure after market regulator Sebi launched a probe into alleged price and volume manipulation in its own scrip on BSE and NSE.
Market capitalisation of the company has fallen by Rs 35,020 crore to Rs 9,555.70 crore from Rs 44,575.60 crore in last four months.
Rising crude oil prices have hit oil market companies (OMCs) hard.
IOC, BPCL and HPCL have lost Rs 31,175 crore, Rs 30,445 and Rs 18,545 crore in terms of market cap this year as their shares slipped between 15-30 per cent.
OMCs are getting punished for ‘probable’ margin compression due to higher crude oil prices.
However, ONGC and Oil India are not getting rewarded for the same.
Recent correction and the resultant valuation provide an attractive opportunity to initiate long positions in OMCs, Antique Stock Broking said in a research report.
Country’s biggest auto makers Maruti Suzuki and Tata Motors have wiped off Rs 29,459 crore and Rs 28,224 crore from investor wealth in 2018 so far.
Maruti shares are down 10 per cent so far in 2018, whereas those of Tata Motors 23 per cent.
Maruti Suzuki last month posted 10 per cent jump in net profit for fourth quarter of 2017-18.
The automobile major’s Q4 net profit increased to Rs 1,882 crore from Rs 1,710 crore in the year-ago period.
The company said an increase in effective tax rate impacted profit.
Brokerage firm Motilal Oswal has a ‘buy’ rating on Maruti with a target price of Rs 10,468.
ICICI Bank, which has been in the eye of a storm following allegations of nepotism at the CEO level in advancing large loans to the Videocon Group, has seen its market-cap shrink by Rs 20,495 crore this calendar.
The stock has plunged over 10 per cent between December 29, 2017 and May 2, 2018.
Wipro has lost Rs 19,547 crore in m-cap as the stock fell 13 per cent to Rs 270.20 from 313.40 amid investor worries surrounding its business.
Among others, ONGC, Vedanta, Bharat Electronics and GAIL have also seen their individual market-cap decline by over Rs 13,000 crore so far this calendar.
Mining conglomerate Vedanta on May 3 reported a 34 per cent jump in consolidated profit-after-tax (PAT) at Rs 5,675 crore for the fourth quarter ended March 2018.
The company had posted a consolidated PAT of Rs 4,226 crore for the year-ago period.
Among the wealth creators, Mastek, HIL, Sudarshan Chemicals, Shakti Pumps, Mindtree, Indiabulls Ventures, Pioneer Distilleries and SORIL Holdings have seen their shares rally up to 108 per cent in the first four months of the calendar year.
