52-WEEK FLOP: UNITECH :: Business Line

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Despite a brief rally of 12 per cent in the last one month, Unitech is among the stocks that declined the most in the last one year. Aside of its struggle to ramp up earnings in the last one year, Unitech has been in the limelight over allegations of favourable deals that the company received in bagging the 2G telecom licence.

Unitech bagged the unified access service licensing, through what is being considered to be a controversial process. The company later sold 67.2 per cent stake in its telecom company to Telenor of Norway. While the process of awarding the licences is now being investigated by the Central Bureau of Investigation, top management of the companies, including that of Unitech, that are alleged to have received favours were arrested. Even as Unitech denied any adverse impact on its business as a result of the above, the market has remained cautious.

Unitech has also not done too well on the business front. For the nine months ending December 2010 while sales expanded a healthy 19 per cent to Rs 2,133 crore, net profits adjusted for extraordinary items dipped 5.5 per cent to Rs 465 crore.

The December quarter was subdued as the company was particularly slow on new launches.