Diamond Power
Diamond Power Infra is engaged in manufacturing of power cables and transmission towers. The company’s financial performance for Q2FY16 was pretty poor. Consolidated net sales dropped 42% (YoY) at Rs.516 crore. The company reduced costs by 38% and that helped it posted an EBIT of Rs.21 crore, down 74%. But a huge interest outgo, of Rs.51 crore, up 76% pushed the company into the red.
The company ended the quarter with a net loss of Rs.18 crore v/s net profit of Rs.40 crore in previous Q2. Dent currently stands at over Rs.2000 crore. The entire fortunes of this company hinges on the revival of the power sector. The power sector is expected to swing back in H2 and once that happens, this company could stand to gain. But as of now, no major triggers are expected for this stock. As at 30th Sept 2015, promoters hold 32.89% stake, FIIs have 14.66% and DIIs hold 5%. Clearly, a much fancied stock amongst the institutions.