As Yet another turbulent year draws to a close, it’s time to see who quashed investors’ hopes on the street. Though the second half of the year saw share prices of a number of top companies coming back on track, some stocks still remained painfully low. B&E finds out the top value destroyers for the year among the BSE 100 constituents
Slow demand hits all
IT giant Infosys topped the chart biggest wealth destroyers (in %). Affected by a slowdown in revenue from Western clients remained the biggest problem for the company. Between Jan 2, 2012 and December 15, 2012, it lost 15.91% of its m-cap. ONGC stood second with 15.66% reduction in its m-cap due to slow oil and natural gas discovery in the new fields and poor yield from existing assets. Two companies from Adani group made it to this not-to-be-proud list. Adani Enterprises suffered due to increasing international prices and a forced 7% promotor’s stake sale to meet compulsory share holding norms, while Adani Power faced issues due to low margins. GMR infrastructure suffered various bottlenecks including sectoral and its own internal issues.
Western disturbances hit Infy
In absolute terms, Infosys and ONGC lost market capitalization to the tune of Rs.178.94 billion and Rs.106.60 billion respectively between Jan 2, 2012 and December 15, 2012. Among others Bharti Airtel saw its m-cap coming down by Rs.39.42 billion due to lower user base and less than expected average revenue per user. However, it is expected that the capex made by the company may soon bring a change in its fortune in the next financial year and a good recovery is on cards for the telecom giant. Rising non-performing assets troubled Punjab National Bank to a great extent during the year. During the given period, the bank’s market capitalisation fell by Rs.3.38 billion.
Slow demand hits all
IT giant Infosys topped the chart biggest wealth destroyers (in %). Affected by a slowdown in revenue from Western clients remained the biggest problem for the company. Between Jan 2, 2012 and December 15, 2012, it lost 15.91% of its m-cap. ONGC stood second with 15.66% reduction in its m-cap due to slow oil and natural gas discovery in the new fields and poor yield from existing assets. Two companies from Adani group made it to this not-to-be-proud list. Adani Enterprises suffered due to increasing international prices and a forced 7% promotor’s stake sale to meet compulsory share holding norms, while Adani Power faced issues due to low margins. GMR infrastructure suffered various bottlenecks including sectoral and its own internal issues.
Western disturbances hit Infy
In absolute terms, Infosys and ONGC lost market capitalization to the tune of Rs.178.94 billion and Rs.106.60 billion respectively between Jan 2, 2012 and December 15, 2012. Among others Bharti Airtel saw its m-cap coming down by Rs.39.42 billion due to lower user base and less than expected average revenue per user. However, it is expected that the capex made by the company may soon bring a change in its fortune in the next financial year and a good recovery is on cards for the telecom giant. Rising non-performing assets troubled Punjab National Bank to a great extent during the year. During the given period, the bank’s market capitalisation fell by Rs.3.38 billion.
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