Hindustan Motors was locked at 10% lower circuit at Rs 11.97 at 10:42 IST on BSE after the company declared suspension of work at its Uttarpara Plant.
The company made the announcement on Saturday, 24 May 2014.
Meanwhile, the S&P BSE Sensex was up 359.71 points or 1.46% at 25,053.06
On BSE, so far 2.72 lakh shares were traded in the counter with pending sell orders of 2.82 lakh shares at lower circuit. The stock has an average daily volume of 1.77 lakh shares in the past one quarter.
The stock hit an intraday high of Rs 13.30, matching its 52-week high hit on Friday, 23 May 2014. The stock hit a low of Rs 11.97 so far during the day. The stock had hit a 52-week low of Rs 6.04 on 7 August 2013.
The stock had outperformed the market over the past one month till 23 May 2014, rising 65.63% compared with 7.94% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 80.71% as against Sensex's 19.29% rise.
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The small-cap company has equity capital of Rs 92.39 crore. Face value per share is Rs 5.
Hindustan Motors has declared suspension of work at its Uttarpara Plant with effect from 6:00 IST of Saturday, 24 May 2014. The company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product the Ambassador and large accumulation of liabilities. Given the present circumstances it has no alternative but to declare a suspension of work at its Uttarpara Plant till further notice. The suspension of work will enable the company in restricting mounting liabilities and restructure its organisation and finances and bring in a situation conducive to reopening of the plant, the company said.
Hindustan Motors reported a net loss of Rs 15.51 crore in the quarter ended 31 December 2013 as against net profit of Rs 20.36 crore in the quarter ended 31 December 2012. Net sales declined 23.2% to Rs 86.74 crore in the quarter ended 31 December 2013 over the quarter ended 31 December 2012.
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