Investors seem to be in a punishing mood, hammering stocks that have underperformed. And, the weak market sentiment appears to have only added to their woes.

BoB and Jubilant Foodworks, which faced the investors’ ire yesterday, were joined by UCO Bank which has begun cracking in the wake of poor Q3 results declared minutes ago.

The Kolkata-based bank reported a higher total income of Rs 4,360.88 crore in Q3 of the current fiscal, compared to Rs 3,973.62 crore in the same period in the previous fiscal. The operating profit also was higher at Rs 830.74 crore (Rs 760.98 crore).

But the bank saw its provisioning (other than tax) and contingencies shooting up to Rs 727.64 crore compared to Rs 420.45 crore in the same quarter of the previous fiscal. The PBT dived to a mere Rs 103.10 crore in Q3 of 2012-13 from Rs 340.53 crore in the same quarter in the last financial year. There was a steep decline in tax expenses to just Rs 63 lakh from Rs 7.98 crore in the same period last year. But in spite of that, the net profit was Rs 102.47 crore compared to Rs 332.55 crore in the third quarter of last year. The net NPA ballooned to 3.32 per cent from 2.04 per cent in Q3 of the last fiscal and the EPS declined sharply to Rs 1.54 from Rs 5.30 in the corresponding quarter in 2011-12.

Shares of UCO Bank have fallen by Rs 4.25 or 5.95 per cent to Rs 67.15, with a huge trading volume of about 53 lakh shares.

The decline in the share price has come at a time when the bank has called for an EGM on March 4 to seek shareholders' approval for making a preferential allotment to the GoI at a price of Rs 77.28 per share to raise Rs 681 crore.

Jubilant Foodworks Ltd was in reverse gear for the second consecutive day after its results were announced on Monday. It said both same stores growth and the future guidance were muted. The stock, which had lost about Rs 63 yesterday, shed a further Rs 70 today to about Rs 1,065. Still the stock is trading at a very high PE of about 58.

BoB, which was pounded by investors, shedding about Rs 64 yesterday, was down by another Rs 11 at Rs 791 on the BSE today after disappointing Q3 results.

(This article was published on February 5, 2013)
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