5 worst small cap stocks - 2009

The year 2009 for Dalal Street proved to be a highly volatile. The beginning of the year was gloomy, the mid-year was quite good, while the ending came as a sparkling shock with good Q2 GDP numbers, strong IIP figures and stimuli provided by government.

Indian equities earned over 75% returns in the year 2009 outperforming global markets by a wide margin. Global markets witnessed a marginal rise of over 20%.

As someone has rightly said, ``There are two sides of every coin``; this is applicable to stocks too. While few stock outperformed the Sensex returns, few stocks underperformed.

Let`s have a look at the `5 worst performing small cap stocks` which plunged to almost half of its values in the year 2009 as against their highs in a year ago.

> Austral Coke and Projects

Austral Coke and Projects, engaged in the manufacture and sale of low ash metallurgical coke and refractory in India is the leading worst performing stock in the small cap index. Stock price of the company plunged 91.53% to stand at dismal Rs 9.06 a share as on Dec. 23, 2009 as against Rs 107 as on Dec. 31, 2008.

Why all of a sudden downside in a scrip price? This could be attributed to the capital market watchdog, Securities and exchange board of India (SEBI) finding fraud transactions on their accounts and not permitting them to raise money. SEBI barred it from raising any fresh equity after the income tax department exposed an alleged more than Rs 10 billion fraud in the company`s transactions.

The company has a market capitalization of over Rs 2,676 million. The P/E ratio is Rs 9.18.

> Ramco Industries

Ramco Industries, a leading manufacturer of fiber cement sheets, pressure pipes, accessories & allied building materials and cotton yarn is the second nastiest performing stock from small-cap index that fallen over 86% to Rs 53.50 as on Dec. 23, 2009 from Rs 408.25 a share as on Dec. 31, 2008.

The company`s market cap is Rs 4571.48 million. The P/E ratio is Rs 16.84. P/BV is at 0.11.

> Shree Ashtavinayak Cine Vision

Shree Ashtavinayak Cine Vision, engaged in film production, distribution and exhibition is the third stock falling 85% from Rs 499.3 a share as on Dec. 31, 2008 to just Rs 74.9 as on Dec. 23, 2009. The company`s market cap is Rs 8036.89 million. The P/E ratio is Rs 40.52.


> Hindusthan National Glass & Industries

Hindusthan National Glass & Industries, engaged in making all kinds of glass containers is the fifth stock which plunged over 75% in the year 2009 to stand at Rs 137.2 a share against Rs 556.95 a share as on Dec. 31, 2008. The company`s market cap is over Rs 12,214 million. The P/E ratio is at Rs 7.84 while P/BV is at 1.12.

>Vishal Information Technologies

Shares of Vishal Information Technologies, involved in areas of data digitization & conversion, e-publishing, digital library solutions and print on demand conversion lost over 96% to stand at Rs 11.71 a share as on Dec. 23, 2009 as against Rs 301.35 as on Dec. 31, 2008. The company`s market cap is Rs 3,019.97 million.

via IRIS