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SRF, TVS, Aventis among stocks with lower lows v/s May 06
There are few stocks, which are now significantly lower than the lows they made in May 2006 reports CNBC-TV18’s Niraj Shah. The list includes SRF, TVS, Sasken Tech, Aventis Pharma and Aurobindo Pharma.
There are few banking stocks and Yes Bank was definitely not one of them and this is pretty good news for the stock. But there are a few stocks, as you spoke about nevertheless. Firstly, SRF is one of the principle stocks which is actually down 22% from the May 2006 levels. CER sales drying up for the company is one of the principle reasons why the stock has actually melted down over the last probably 12-18 months, not just from the 206 levels.
TVS is down around 50% from the May 06 levels; They lost Flame court case to Bajaj and also repeated delays in the launch of its three-wheelers and the launch of Flame is actually something that has prompted analysts to downgrade the stock. This is one of the reasons why the stock is actually not doing well, even in today's trade.
We have seen terrible two-quarters that Sasken Tech has delivered in terms of it's performance and lack of visibility in the core product sales Are actually causing a lot of brokerage houses to discontinue the coverage. They are actually keeping it out from the most preferred lists of stocks. This is one of the reasons why the stock is actually gone down to as low as Rs 117 from the highs of around Rs 550-560 odd that we have seen on stock.
Lastly there are a couple of pharma stocks which are down 35% from May 2006 lows. Aventis Pharma of course the net profits have declined 21% for the first nine-months. The decline in exports and poor domestic sales as well as fluctuating rupee, all of these have affected the stock of Aventis Pharma. The stock not doing well at all.
Lastly it's Aurobindo Pharma . Lower Penicilin G prices leading to lower margins is one of the principle reasons. Also slower ramp up in formulation revenues from the US generic business is one of the principle reasons why the stock has again not found favour with sale side analyst and consecutively with the buyers in the stock.
By Niraj Shah, CNBC-TV18
