It is very uncommon to see some high profile good quality stocks sink to absymally low levels. However, worries over debt payments, bad debt worries and NPA problems have sent stock prices crashing. Here are a few stocks that have hit 5 year lows, while one of them has hit a 10-year low.
Yes Bank shares plunged to a 10-year low and was last seen trading at Rs 33 on the NSE. Reports that the promoters have sold shares and pledged share sale spread panic earlier this week, with the share price plunging almost 23 per cent on a single day on Tuesday.
Promoters too have been selling their stake in the bank to repay debts, which has further aggravated problems in the stock. No investor can bet if this is a good bet to enter the stock. Each time they recommend the stock it plunges even further to lower levels.
The bank has recently received an approval from the RBI to increase its authorized capital.
Shares in IndiaBulls Housing too has plunged to a new 5 year low, after the Delhi High Court issued notices to the company, the Securities and Exchange Board of India (Sebi), the Reserve Bank of India (RBI) and other respondents in a public interest litigation (PIL) seeking a probe into the mortgage lender.
The constant negative news surrounding the company has had an impact on the share price. Problems at Lakshmi Vilas Bank, has also played a part in the fall of the IndiaBulls Housing stock. The company is looking at a merger with the bank and is seeking an approval from the Reserve Bank of India.
Shares in Zee Entertainment too have hit a 5-year low, after worries over debt repayment by the group continued to weigh on sentiments.
The group companies have an outstanding debt repayment and unless they sell their stake or sell other assets and pay the debt, the stock would continue to be under pressure. Recently, mutual funds have sold the pledged shares of the promoters, which resulted in a huge crash in the stock. The stock at the current levels has some value, but, the promoters debt worries continue to be an overhang as far as the company is concerned.
The shares have now hit a new 5 year low of Rs 216 on the NSE.
GIC Housing Finance
This is another stock that has plunged to a 5-year low. The shares were last seen trading at Rs 133 on the NSE. On Tuesday, the shares plunged almost 7 per cent in a single trading day, as investors continued to worry over the problems for NBFCs and HFCs.
LIC Housing Finance
While this may not be at a 5-year low, it is definitely a 3-year low for the stock. The company because of the strong pedigree would easily be able to pass through the storm of worries in the NBFC sector. It remains one of the stronger housing finance companies. However, these days the carnage in stocks can just about take everything down with it.
Some of the above mentioned stocks are high quality stocks and unless the problems in the banking sector pass-by it is difficult to see some of these stocks recovering. In some cases bottom fishing may also not help.