Amtek Auto plunges 39%: What's the hurry to sell today?

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Shares of Amtek Auto plunged 39 percent intraday on Wednesday. The weakness also spilled over to other subsidiary companies JMT Auto and Castex Tech (both down 5 percent) while Metalyst Forgings slipped 10 percent.

So, what led to the fall? Investors seem to be nervous for various serious. First, the auto component major company will be excluded from trade in Future & Options (F&O) from November Series. 

The market may have sniffed something more than that as the quantum of fall in a day is quite huge. The stock has fallen more than 50 percent in year-to-date and around 40 percent in last three days alone.

The company is said to be staring at a huge debts. According to an earlier CNBC-TV18 report, Amtek India and Castex Tech are facing trouble with USD 70 million FCCB issue.

However, Gautam Malhotra, MD of the company says that the company is not facing any problems with lenders. In an interview to CNBC-TV18, he says that company expects to reduce debt by up to Rs 2000 crore in next two years and is exploring various options to reduce debt.

Meanwhile, April-June quarter earnings of the company were not at all impressive. It has reported a quarterly loss for the first time ever in Q1FY16 as EBITDA halved, margins slipped to 20 percent versus 31 percent  (Y-o-Y). Interest costs also doubled hitting profitability.

Amtek Auto posted a loss of Rs 157.6 crore during the quarter against profit of Rs 86 crore in the same period last year due to higher interest cost. Net sales of the company declined 12.7 percent at Rs 854 crore in the June quarter against Rs 979 crore in the corresponding quarter of previous fiscal.

Amtek Auto ended Rs 89.00, down Rs 39.55, or 30.77 percent on the BSE.

Posted by Nasrin SultanaFollow @NasrinzStory