20 stocks that have eroded shareholder wealth in CY17

STOCK MARKET - Shares of Anil Ambani-owned Reliance Communications (RCom) came under selling pressure again on Thursday and lost around 4.4% to Rs 9.75 levels, after the company recently defaulted on its interest payment obligation. On a year-to-date (YTD) basis, the stock has plummeted over 70%.

Besides RCom that has eroded shareholder wealth in CY17, shares of Videocon Industries, Religare Enterprises, Sintex, Lupin and Glenmark are some of the names in the BSE A group that have seen negative return thus far in CY17. By comparison, the benchmark indices – S&P BSE Sensex and Nifty50 – have gained around 25%.

Videocon is the top loser in this pack that has slipped nearly 86% to Rs 14 levels (YTD). The company that has an outstanding debt of nearly Rs 43,000 crore is learnt to have got in-principle approval of lenders to restructure debts after its promoters agreed to pump in Rs 3,000 crore as equity.

Religare Enterprises has slipped 82% thus far in CY17 to Rs 46 levels, but has recovered marginally from its 52-week low of Rs 42.70. Recently, the company reported that its standalone net loss has widened to Rs 47.39 crore for the first quarter ended June 30, 2017. It had registered a net loss of Rs 25.84 crore in the same quarter of 2016-17.

Given the backdrop, analysts say investors should not add these stocks to their portfolio as the business model remains weak and it will be difficult for these companies (RCom and Videocon) to claw back to profitability in the foreseeable future.