18% cos trading below face value

Written by Pradip Kumar Dey | Mumbai | Updated: Aug 20 2011, 06:54am hrs
With the equity market tanking, about 18% of listed companies are quoting below their face value. Out of 2,909 companies, 537 companies were quoting below their face value as on August 19.

Electrosteel, Future Ventures, Indosolar, Andhra Cement and Birla Power are among major companies whose share price are quoting below their face value.

According to Ramanathan K, CIO at ING Investment Management, Typically the stocks that have got beaten down are companies with poor earnings visibility, high leverage or poor fundamentals.

He said that the sell off by foreign investors has impacted some mid/small cap companies more than others.

The Indian market has been one of the worst performing markets for the year-to-date owing to inflation concerns, domestic investment slow down as well as growing risk aversion among global investors.