Stocks
Kemrock Industries: Shares plummet on poor results and pledging of shares

Kemrock Industries & Exports tumbled to nearly half its price in 10 days. Poor results, increasing finance costs and additional pledging of shares has resulted in investors dumping the stock

 
Kemrock Industries & Exports, which was trading at around Rs500 per share sometime back, has fallen more than half to Rs205.15 on the BSE. The company which manufactures fibre reinforced composite materials has been on a decline in the last six days, hitting its lowest in the last three years. The promoters of the company have pledged nearly 70% of their stake and the recent quarter results have seen a huge drop in sales. The poor results which were declared a couple of days back resulted in the stock hitting its lower circuit of 10% today and closed at Rs 205.15 a piece. 
 
The promoter of the company Kalpesh M Patel who holds 51.38 lakh shares (25% of total share capital), pledged an additional 6.97 lakh shares this month. This takes the total number of pledged shares to 36.87  to 36.22, which works out to 71% of his stake and 17.82% of the total share capital. The promoters hold a stake of 27.07% in the company as on 30 June 2012. Institutional investors hold a stake of 3.35% and retail investors hold a stake of 6.80%.
 
The decline in the stock price started after the recent round of pledging on 6 August 2012 where 6.97 lakh share were pledged to 12 institutions. Out of this two lakh shares were pledged to Karvy Financial Services, 1.2 lakh shares were pledged to Ess Dee Aluminium and 60,000 shares each to Bright Brothers and Sicom.
 
If this was not enough, the financial results for the quarter ended June 2012 sent investors over the edge. Sales declined by nearly 40% over the pervious quarter and by 45% year-on-year to Rs161.65 crore. Net profit came down by a whopping 93% y-o-y from Rs26.05 crore to Rs1.86 crore as finance costs also increased by 33% to Rs51.38 crore over the previous corresponding quarter. The operating profit margin for the earlier few quarters which was around 27%, which came down to 12%.
 
Established in 1981, the company manufactures and exports fibre reinforced composite products for major industrial sectors such as aerospace, defence, renewable energy, wind energy, railways, chemical processing, oil and gas, water and waste water management, infrastructure, construction, electrical and electronics, marine, telecommunications. The revenue from composite products came down by 40% over the previous quarter to Rs152.56 crore.
 
Venugopal K Shastri, who was a director of the company since November 2010, resigned earlier this month. 
 

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COMMENTS

Bosco Menezes

3 years ago

Incredible that FRP Holdings, which as per Kemrock's announcement today is going to invest 260 Million USD in the company to enable Kemrock to reach an OTS with banks, has practically NO web presence. So also it's president Mr. Earvin Richard who again has NO web presence. Surely a company that can invest 260 million USD in a single investment, should have a web presence ?
Wonder if Kemrock's bankers are so desperate to recover an NPA that they have not bothered to investigate the colour of the money they are getting ? Looking for answers if anyone has them .....

Arvind Mehta

5 years ago

Company has no money for Salary of Employee.... PF... Income Tax pay and also for supplier...How can Company produce material and sale ???? Also no sales person.....Share price will be Rs. 10 in next month.......

Ramesh Poapt

5 years ago

The new plant for aerospace rcp was first of its kind and was inaugurated by Dr Abdul Kalam, who praised this project-to the best of my knowledge.The Co's profit and share price zoomed during 2009-10-11.Co.will be in loss in the next quarter/s.But,perhaps that may not be the end of the Co.At some more decline,it could be interesting Co. risk/rewardwise for brave heart long term investors.

krishna

5 years ago

fuck of for this company just in 3 days lost more than 100 rs/share, wt fuck are managment doing abouth share holders.

BSE, NSE among top 5 emerging market bourses: SEBI

Listing out a total of 14 stock exchanges across emerging countries, SEBI said the BSE stood at fourth position and the NSE at fifth among these bourses in terms of cumulative market capitalisation of all their listed companies

Mumbai: The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are among top five bourses across the emerging economies of the world in terms of market capitalisation, the Securities and Exchange Board of India (SEBI) has said in its latest monthly report, reports PTI.

Listing out a total of 14 stock exchanges across emerging countries, SEBI said the BSE stood at fourth position and the NSE at fifth among these bourses in terms of cumulative market capitalisation of all their listed companies.

SEBI has cited data from the World Federation of Exchanges (WEF) in its monthly report for June 2012.

The BSE stood at the fourth position with a market cap of $1,101.87 billion as on 30 June 2012, up 6.36% from $1,035.91 billion at the end of previous month.

The NSE stood at fifth spot with market valuation at $1,079.39 billion at June-end, an increase of 6.42$ from $1,014.21 billion in May.

Among emerging countries, Shanghai Stock exchange (China) was ranked as number one with a market cap of $2,410.87 billion, followed by Shenzhen Stock Exchange (China) at $1,149.17 billion and BM&FBOVESPA (Brazil) at $1,127.24 billion.

Overall, the major stocks listed in both developed and developing countries recorded upward trend in market value at the end of June 2012.

Among developing regions, the market capitalisation of Mexican Exchange grew by 12.2% during June 2012 and that of Johannesburg Stock Exchange by 7.11%.

On the other hand, Shanghai Stock Exchange plunged by 5.8% during the month followed by Shenzhen Stock Exchange 4.1%.

Besides developed markets, the market capitalisation of NYSE Euronext (Europe) recorded a growth of 7.78%, followed by London Stock Exchange Group (7.30%) and NASDAQ OMX Nordic Exchange at 6.62%.

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Nifty, Sensex may rise further: Tuesday Closing Report

The Nifty may see a staggered upmove 

 
The market closed marginally off the day’s high supported by a fall in headline inflation and support from global markets. Yesterday we had mentioned that the Nifty has to break out of the range of 5,300 and 5,377 for further direction. Today in the second half of trade, the index broke the upper range and settled above it. We may now see the benchmark making a staggered upmove in the range of 5,445 and 5,345. The National Stock Exchange (NSE) saw a volume of 54.42 crore shares. The Indian market will remain closed on Wednesday on account of the Independence Day holiday.
 
The domestic market opened almost unchanged from its previous close as investors were focussed on the headline inflation numbers, due to be announced later in the day. Markets in Asia were higher in morning trade on hopes that, after a spate of dismal economic indicators, policymakers across the world will gear up to spruce growth.
 
Back home, the Nifty opened five points down at 5,343 and the Sensex started off at 17,632, down one point from its previous close. The market was volatile in early trade on selling pressure from realty, capital goods and healthcare stocks.
 
Meanwhile, the rupee depreciated by 29 paise to 55.63 against the dollar in early trade on increased dollar demand from importers and a lower opening of the equity market. The rupee had lost 6 paise to end at 55.34 against the dollar yesterday.
 
India’s exports declined by 14.8% year-on-year to $22.4 billion in July this year due to the global demand slowdown. Imports too contracted during the month by 7.61% to $37.9 billion, leaving a trade deficit of $15.5 billion, government data revealed.
 
During the April-July period of 2012-13, exports have shrunk by 5.06% cent to $80.4 billion. Imports during the period dipped by 6.47% to $153.2 billion.
 
The dismal trade figures for July resulted in the indices touching their intraday lows in late morning trade. At this point, the Nifty fell to 5,329 and the Sensex dipped to 17,572.
 
However, a drop in inflation numbers for July brought a cheer to the market, lifting it from the lows and into positive terrain in noon trade.
 
Headline inflation declined to 6.87% in July as the rate of price rise of the food articles category eased a little, although pressure remained on potato, pulses and rice as well as manufactured items. 
 
Inflation, as measured by the Wholesale Price Index (WPI), was 7.25% in June and stood at 9.36% in July 2011. Overall, food inflation declined to 10.06% in July, from 10.81% in June.
 
The benchmarks witnessed a further upmove on positivism in the global markets as the key European indices opened in the green and those in Asia extended their gains towards the end of the day’s trade.
 
The gains enabled the market hit its intraday high in the post-noon session with the Nifty touching 5,387 and the Sensex going up to 17,753. The indices held on to their gains in the late session on support from oil & gas and banking stocks.
 
The market closed marginally off the highs on a decline in headline inflation for July and supportive global cues. The Nifty settled 32 points (0.61%) higher at 5,380 and the Sensex finished trade at 17,728, a rise of 95 points (0.54%) over its previous close.
 
The advance-decline ratio on the NSE was positive at 871:802.
 
The broader indices underperformed the Sensex today. The BSE Mid-cap index rose 0.30% and the BSE Small-cap index gained 0.25%.
 
BSE Oil & Gas (up 1.27%); BSE Bankex (up 1.08%); BSE Metal (up 0.83%); BSE PSU and BSE Auto (up 0.71% each) were the top sectoral gainers today. The losers were BSE Realty (down 0.73%); BSE Healthcare (down 0.34%) and BSE Power (down 0.07%).
 
The top Sensex gainers were Tata Motors (up 2.85%); Tata Steel (up 2.63%); Jindal Steel (up 2.47%); ICICI Bank (up 2.05%) and ONGC (up 1.82%). The main laggards were Sun Pharma (down 2.10%); HDFC (down 1.78%); Sterlite Industries (down 1.27%); Bajaj Auto (down 0.97%) and Hindalco Industries (down 0.91%).
 
The top two A Group gainers on the BSE were—Adani Enterprises (up 4.68%) and Indraprastha Gas (up 3.63%). 
The top two A Group losers on the BSE were—Alstom T&D (down 3.99%) and Suzlon Energy (down 3.95%).
 
The top two B Group gainers on the BSE were—Creative Eye (up 20%) and Goodluck Steel Tubes (up 19.81%).
The top two B Group losers on the BSE were—Pitti Laminations (down 19.93%) and JTL Infra (down 18.20%).
 
The top gainers on the Nifty were Tata Motors (up 3.31%); Ranbaxy Laboratories (up 3.30%); IDFC (up 2.85%); Tata Steel (up 2.67%) and Axis Bank (up 2.66%). The key losers were Sun Pharma (down 2.33%); HDFC (down 2.08%); Hindalco Ind (down 1.24%); Sterlite Ind (down 1.23%) and BPCL (down 1.15%).
 
Markets in Asia settled on a firm note on better-than-expected June quarter GDP numbers from Germany and France, which eased some debt related concerns. This apart, the minutes of a Bank of Japan meeting, revealed that the government was committed to economic growth and would take necessary steps, when necessary.
 
The Shanghai Composite gained 0.30%; the Hang Seng surged 1.05%; the Jakarta Composite rose 0.46%; the KLSE Composite advanced 0.40%; the Nikkei 225 climbed 0.50%; the Seoul Composite jumped 1.27% and the Taiwan Weighted settled 0.58% higher.
 
At the time of writing, the key European indices were up between 0.27% and 0.67%.
 
Back home, foreign institutional investors were net buyers of stocks totalling Rs339.76 crore on Monday while domestic institutional investors were net sellers of equities aggregating Rs176.34 crore. 
 
UK-based travel major Thomas Cook Group plc (TCG) has concluded the sale of 76.69% stake in its India operations to investment firm Fairbridge Capital (Mauritius).  The sale was approved with 99.99% votes by shareholders of Thomas Cook Group, Thomas Cook India (TCIL) said in a filing to BSE. TCIL rose 0.17% to close at Rs60.70 on the NSE.
 
State-run Life Insurance Corporation of India (LIC) has sold 2.68% stake in cement maker ACC for Rs187.75 crore through open market operations. LIC had 10.51% stake or 18.77 crore shares in ACC prior to the transactions that took place between November last year and August 10 this year, both at the BSE as well as the NSE, the cement firm said in a regulatory filing today. Following the transactions, LIC’s shareholding in ACC, in which Swiss major Holicm has the majority stake, has now come down to 7.82%. ACC was down 0.35% to Rs1,355.50 on the NSE.
 
Pharma major, Cipla, on Tuesday said it has launched ‘Qvir’, a four-drug kit priced at Rs158 per kit to be used for treating HIV/AIDS. The kit consists of two tablets packaged together in one strip which represents a single day’s treatment, Cipla said in a statement. The stock settled at Rs349.40 on the NSE, down 0.14%.
 

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