Caution! Here are top midcaps and smallcaps that eroded investors’ wealth in FY17

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26 Aug, 2025 12:21

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Moneycontrol News

Benchmark indices had a good financial year, with the Nifty registering a gain of nearly 19 percent during the same period.

The NSE’s midcap index gained 37 percent during the fiscal, while the exchange’s smallcap index registered a gain of whopping 42 percent.

Despite this phenomenal gains, there were some stocks in midcaps and smallcaps that almost destroyed investors’ wealth due to a variety of reasons.

Moneycontrol takes a look at such stocks in both the segments, which lost the most in a year.

Midcaps

(I) Divi’s Laboratories | CMP: Rs 624.15 | Price on March 31, 2016: Rs 987.25 | Loss: 36.77 percent

The stock took a bad hit in the past one month on the back of multiple serious observations by the US Food and Drug Administration (FDA) on its plants. The company has been consistently getting this observations and alerts over the past year, adding to the stock’s fall.

(II) MindTree | CMP: Rs 452.4 | Price on March 31, 2016: Rs 653.25 | Loss: 30.74 percent

This mid-sized IT firm has taken a hit on the back of poor outlook towards Indian IT firms due to uncertainties over visa issuances for migrant workers. The Trump administration has been signaling cuts in those issuances, along with increasing base pay to boost local recruitment.

(III) Wockhardt | CMP: Rs 720.00 | Price on March 31 2016: Rs 973.95 | Loss: 26.07 percent

Wockhardt has eroded investors’ wealth by over 26 percent on the back of many import alerts. The company has been severely hit due to these alerts on manufacturing practices as well as observations.

Smallcaps:

1. Future Enterprises | CMP: Rs 30.2 | Price on March 31, 2016: Rs 128.5 | Loss: 76.49 percent

The stock chopped investors’ wealth by more than half after the company announced a demerger during the year. The stock also had a few block sale deals, coupled with poor results, which hit its performance during the fiscal year.

2. Inox Wind | CMP: Rs 170 | Price on March 31, 2016: Rs 259.2 | Loss: 34.41 percent

The stock has lost over 34 percent during the year after the government’s push to renewable energy reduced. Moreover, poor business environment in the renewable energy sector has reflected in the results.

3. Bajaj Hindusthan | Rs 13.34 | Price on March 31, 2016: Rs 20 | Loss: 33.3 percent.

As such, the stock’s performance was hit by the weak quarterly figures, but its loss was seen narrowing as well. However, investors could have bet negatively on the stock after the firm reduced its deal size to sell the power business to Lalitpur Power Generation Company to Rs 1,227 crore. It had earlier plans to sell its co-generation power business, with 449 MW capacity at 14 locations in Uttar Pradesh, to the firm at Rs 1,800 crore.