10 largecaps ruined your money even as BSE m-cap scaled Mt. 150 lakh cr mark
, ETMarkets.com|
Updated: Dec 25, 2017, 10.50 AM IST
NEW DELHI: With the benchmark equity indices soaring all-time high levels, and market capitalisation of BSE-listed companies touching Rs 150 lakh crore-mark, 10 largecap stocks from the BSE100 index just failed to deliver in an otherwise rewarding year.
BSE’s largecap benchmark Sensex is up 27 per cent for the ongoing calendar, but these 10 stocks have fallen up to 41 per cent. These stocks collectively lost Rs 1.2 lakh crore of market capitalisation in the year that is drawing to a close.
Data showed shares of Lupin have tumbled over 41 per cent this year. The drug maker's m-cap has fallen from about Rs 67,000 crore last year to Rs 39,700-odd crore. Glenmark (down 37 per cent), Dr Reddy's Labs (down 23 per cent) and and Sun Pharma (down 16 per cent) are other worst performing BSE100 stocks this calendar.
"Frontline pharma players, those commanding more than $500 million in US sales, have been left beaten and bruised over the past 12‐18 months. The key reasons behind the accentuated decline in US sales are well known by now: generic price erosion, faster FDA approvals and large portfolios roiled by channel consolidation," IIFL Wealth Management said in a note.
The brokerage is against any exposure to US-centric bets like Sun Pharma, Dr Reddy's Labs, Lupin and instead recommends a closer look at a few smaller plays which are either undergoing an API-to-formulation transition, such as Laurus Labs, aspiring for a US market niche backed by a steady margin ROW business, such as Strides Shashun, or are dedicated specialists such as HealthCare Global.
Among other players, Tata Motors (down 11 per cent) and its DVRs (down 21 per cent) too disappointed Dalal Street during the year. The automaker reported 14 per cent drop in profit after tax (PAT) annually over FY12-17 on a 10 per cent compounded annual growth rate in sales during the same period, a Motilal Oswal Securities' report said.
Yet, the stock delivered at around 11 per cent return during the same period.
Among other stocks, Coal India dropped 11 per cent this calendar. IDFC Bank is down 8 per cent , Bosch 5 per cent and ONGC 2 per cent, respectively.
On Coal India, JM Financial said, "CIL’s long-term structural story remains strong, as we expect GDP/IIP growth-led power demand to trigger CIL’s offtake growth by FY19-FY20. While any additional kicker to revenues from price hikes will only add to our earnings estimates. We remain long-term positive and maintain a buy rating with a DCF-based target of Rs 320."
Sanjiv Bhasin, EVP-Markets & Corp Affairs, IIFL recently told ETNow that IDFC Bank is in the process of increasing its franchise and branches due to which the cost of money has been slightly dearer for it than other banks.
"This has put pressure on net interest margins (NIMs). But we think the franchise which is fastly developing into retail and MSME loan should see a very strong order book in the next two quarters, where we think NIMs can expand on the upside. It trades at about 1.3 times (P/BV), the risk reward is also very positive for an upside of 75 in the next one year,” Bhasin said.
BSE’s largecap benchmark Sensex is up 27 per cent for the ongoing calendar, but these 10 stocks have fallen up to 41 per cent. These stocks collectively lost Rs 1.2 lakh crore of market capitalisation in the year that is drawing to a close.
Data showed shares of Lupin have tumbled over 41 per cent this year. The drug maker's m-cap has fallen from about Rs 67,000 crore last year to Rs 39,700-odd crore. Glenmark (down 37 per cent), Dr Reddy's Labs (down 23 per cent) and and Sun Pharma (down 16 per cent) are other worst performing BSE100 stocks this calendar.
"Frontline pharma players, those commanding more than $500 million in US sales, have been left beaten and bruised over the past 12‐18 months. The key reasons behind the accentuated decline in US sales are well known by now: generic price erosion, faster FDA approvals and large portfolios roiled by channel consolidation," IIFL Wealth Management said in a note.
The brokerage is against any exposure to US-centric bets like Sun Pharma, Dr Reddy's Labs, Lupin and instead recommends a closer look at a few smaller plays which are either undergoing an API-to-formulation transition, such as Laurus Labs, aspiring for a US market niche backed by a steady margin ROW business, such as Strides Shashun, or are dedicated specialists such as HealthCare Global.
Among other players, Tata Motors (down 11 per cent) and its DVRs (down 21 per cent) too disappointed Dalal Street during the year. The automaker reported 14 per cent drop in profit after tax (PAT) annually over FY12-17 on a 10 per cent compounded annual growth rate in sales during the same period, a Motilal Oswal Securities' report said.
Yet, the stock delivered at around 11 per cent return during the same period.
Among other stocks, Coal India dropped 11 per cent this calendar. IDFC Bank is down 8 per cent , Bosch 5 per cent and ONGC 2 per cent, respectively.
On Coal India, JM Financial said, "CIL’s long-term structural story remains strong, as we expect GDP/IIP growth-led power demand to trigger CIL’s offtake growth by FY19-FY20. While any additional kicker to revenues from price hikes will only add to our earnings estimates. We remain long-term positive and maintain a buy rating with a DCF-based target of Rs 320."
Sanjiv Bhasin, EVP-Markets & Corp Affairs, IIFL recently told ETNow that IDFC Bank is in the process of increasing its franchise and branches due to which the cost of money has been slightly dearer for it than other banks.
"This has put pressure on net interest margins (NIMs). But we think the franchise which is fastly developing into retail and MSME loan should see a very strong order book in the next two quarters, where we think NIMs can expand on the upside. It trades at about 1.3 times (P/BV), the risk reward is also very positive for an upside of 75 in the next one year,” Bhasin said.
