Opto Circuit hits new low

Opto Circuits is on a weak note today, more due to technical reasons. The stock has hit a new 52-week low at Rs.24.90 and currently remains down over 10%.

The stock is down purely with operators selling the stock as mentioned by our Editor, Mr.SP Tulsian in the Market Whisper column, the stock is showing weakness and he had expected it to fall to Rs.25 levels today, which it has.

Fundamentally, the company posted much below expected numbers for March’13 quarter, with a 95% drop in net profit and this was on account of major working capital issues, slowdown in its European markets. The company has also discontinued giving guidance’s as it states that it is in the process of restructuring its debt. The constant change in management is also a cause of worry.