Amtek Auto tumbled 12.83% to Rs 56.10 at 11:41 IST on BSE, with the stock extending its recent steep slide triggered by the NSE's decision to exclude the stock from its equity derivatives segment.
Meanwhile, the BSE Sensex was down 963.78 points, or 3.52%, to 26,402.29
The stock fell on high volumes. On BSE, so far 22.88 lakh shares were traded in the counter, compared with an average volume of 8.47 lakh shares in the past one quarter.
The stock hit a high of Rs 62.80 and low of Rs 53.80 so far during the day. The stock had hit a 52-week low of Rs 50.70 on 20 August 2015. The stock had hit a 52-week high of Rs 266 on 12 September 2014.
The stock had underperformed the market over the past one month till 21 August 2015, sliding 61.65% compared with 2.9% fall in the Sensex. The stock also underperformed the market in past one quarter, declining 59.81% as against Sensex's 1.59% decline.
The small-cap company has an equity capital of Rs 44.06 crore. Face value per share is Rs 2.
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Shares of Amtek Auto had gained 0.86% to settle at Rs 64.30 on Friday, 21 August 2015 on bargain hunting. Earlier, the stock had dropped 57.28% in four trading days to settle at Rs 63.75 on 20 August 2015 from Rs 149.25 on 14 August 2015. The stock dropped 28.37% on 20 August 2015 after the sliding 30.77% on 19 August 2015.
Bulk of the fall came after the National Stock Exchange (NSE) early last week announced that the bourse has decided to exclude the Amtek Auto stock from its equity derivatives segment. The NSE in a circular issued after trading hours on 18 August 2015 announced that the bourse has decided to exclude the Amtek Auto stock from its equity derivatives segment based on the stock selection/exclusion criteria prescribed by Securities and Exchange Board of India (Sebi). NSE said that derivatives contracts for new expiry months in Amtek Auto will not be issued on expiry of existing contract months.
Meanwhile, with reference to the news article captioned Amtek Auto shares down around 70% in a month on debt worries, Amtek Auto clarified after market hours on 20 August 2015, that as disclosed in Q1 June 2015 results, there is decline in the operational performance of the company due to current market scenario which caused decline in the sales and profit margins of the company. There is temporary cash flow mismatch in the company and to mitigate the present situation, the promoters have already infused Rs 75 crore and if required in future will also infuse more funds. The company is also exploring various means of fund raising, Amtek Auto had said.
Apart from exclusion of shares of the company from the futures and options (F&O) segment, the company is not aware of any reasons of the significant single day fall in the stock price of the company, Amtek Auto had said.
The management remains confident in the company's abilities to capitalize on opportunities arising out of a stronger recovery in the Indian automobile industry over the quarters to come. The management re-iterates that the long term fundamentals of the company remain strong, Amtek Auto had said.
Amtek Auto reported net loss of Rs 157.60 crore in Q3 June 2015 as against net profit of Rs 86.08 crore in Q3 June 2014. Net sales declined 12.7% to Rs 854.22 crore in Q3 June 2015 over Q3 June 2014.
Amtek Auto is one of the largest integrated automotive component manufacturers in India with a strong global presence. Amtek Auto has a presence in forging, grey and ductile iron casting, gravity and high-pressure aluminum die casting and machining and sub-assembly. The company also manufactures components for non-auto sectors such as the railways, specialty vehicles, aerospace, agricultural and heavy earth moving equipment. The company has manufacturing facilities in India, Europe and North America.
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