The stock of high pressure cylinders maker, Everest Kanto Cylinders, declined 63 per cent in the last three years.

As export market sales account for well over half the consolidated revenues, the global meltdown in 2008 resulted in drop in demand for industrial and jumbo cylinders from its key markets abroad. Realisations in the domestic market too declined over the above period.

The full impact of the slowdown was visible only in Everest Kanto's FY10 numbers as slowing order flow affected revenues only in 2009.

Net profits in FY10 dropped to a third of the previous year's profits. As a result, the stock could not entirely participate in the broad market rally that began after the market lows in March 2009.

The company however, witnessed strong revival in its cylinder volumes in FY11 and has been able to sustain growth, thanks to robust sales seen in its Dubai facilities, which caters to West Asian markets.

For the quarter ended June, sales jumped 50 per cent over a year ago and earnings moved to the profit zone from losses in the June 2010 quarter.

Foreign currency convertible bonds due for repayment in 2012, besides lack lustre realisations in the domestic segment, appear to be reasons for the market's pessimism in the stock.