Havells tanks as guidance lowers

Havells had hi t a 52-week high yesterday at Rs.346.15 and today, it is currently the top loser on the BSE, down almost 5.5% at Rs.294 with an intra day low at Rs.290. What changed so dramatically between yesterday and today?

Well, the company yesterday stated that it could have some issues about meeting the sales guidance. The company has cut the guidance lower to 12%  -14%, down from earlier 17% -20%. The company has also stated that it could see some pension liabilities coming in the second half of FY15, which could affect the profits.

This stock is pretty high on market fancy and when such news comes out, high expectations come crashing down. Further sell on the counter is not ruled out as this news sinks in.