Pipavav Defence continues to breach the lower circuit and hit new lows every day. Today too, it is locked at the lower circuit of Rs.35.45 and this is a new 52-week low.

The stock has been down consistently over the past few days as analysts are expecting the company to show pain in the Q3FY14 numbers. Though the company recently announced having won a Rs.221 crore order from the Ministry of Defence for construction of a training ship for the Indian Coast Guard, the worry is about most order execution as that is expected to remain under a cloud. This worry, plus its higher raw material costs are expected to lead the company post a declining net profit for Q3. Kotak Securities put out a note stating that its expects the company’s net profit to decline from Rs.10 crore to Rs 4 crore (YoY). But at the same time, it expects revenue to increase 28% (YoY) and decline 2% (QoQ). Its order book stands at Rs.12,000 crore and trading revenue are also expected to increase. The company, in March is planning to raise around $150 million through a listing on the London Stock Exchange or a strategic stake sale.