Markets
BSE See
NSE See
28,114.56
409.21 (1.48%)

Top 5 Companies With Negative Net Worth

By Saikat Mitra | 6/28/2013 9:00 PM Friday

A couple of weeks ago, we had looked at the top 5 companies with the highest net worth. Of course, there is a flip side to this too. A company’s net worth runs into negatives if its accumulated losses exceed the shareholders’ equity, if it is debt-ridden to the extent that its liabilities exceed its assets, or when the value of its assets depletes massively. This implies a weak financial position that can be turned around only by consistent profits over the coming years.

The following is a list of 5 companies with the highest negative net worth as of March 31, 2013.

Company NameNet Worth As Of FY13 (Rs/Cr)YTD Return (%)
Kingfisher Airlines -5,635.50 -261.25
Tata Teleservices (Maharashtra) -1,133.98 -90.24
Southern Petrochemicals Industries -1,044.91 -57.89
Jet Airways (India) -539.45 -32.01
LML -478.91 -38.6
Source: Dion Insight

Kingfisher Airlines: It would come as no surprise to see the troubled Kingfisher Airlines (KFA) topping our list of companies with negative net worth. KFA has been reporting losses consistently over the past 9 years. It has a huge debt pile-up of around Rs 8000 crore on its books, which is a matter of serious concern.

As of March 31, 2013, the company had a negative net worth of Rs 5635 crore. In this calendar year, the scrip has depreciated by a humongous 261.25%.

Tata Teleservices (Maharashtra): Tata Teleservices Maharashtra (TTML) spearheads the Tata group's presence in the telecom circles of Maharashtra (including Mumbai) and Goa. The company also has a significant pull in the GSM space through a joint venture with NTT DOCOMO of Japan in November 2008, and offers differentiated products and services in Mumbai, Maharashtra and Goa under the brand name Tata DOCOMO.

At present, the company has a negative net worth of Rs 1133.98 crore and the stock price has depreciated by 90.24% on a YTD basis.

Southern Petrochemicals Industries: Southern Petrochemical Industries Corporation was incorporated in 1969 and is headquartered in Chennai. It engages in the manufacture and sale of fertilisers primarily in India.
The company offers urea, a nitrogenous chemical fertiliser that is used in the processing of cotton and textile mills, as cattle feed and is also a raw material for chemical products, dyes, and pharmaceuticals. It provides tissue culture plants and hybrid seeds. It also operates a semiconductor assembly and test facility, which offers integrated circuits packing solutions.

For FY13, the company’s net worth is in the red at Rs 1044.91 crore. The stock has a negative return of 57.89%.

Jet Airways (India): Jet Airways (India) was founded in 1993 and is based in Mumbai. The company provides
passenger and cargo air transportation services and also leases aircrafts. It operates flights to 76 destinations in India and internationally. As of June 20, 2012, Jet operated a fleet of 103 aircrafts comprising 10 Boeing 777-300 ER aircrafts, 12 Airbus A330-200 aircrafts, 61 next generation Boeing 737-700/800/900 aircrafts, and 20 modern ATR 72-500 turboprop aircrafts.

This is the second company from the aviation sector that has featured in this list, and has a negative net worth of Rs 539 crore. The scrip has fallen by 32.01% on a YTD basis.

LML: LML Ltd. was incorporated in 1972 and is based in Kanpur. It engages in the manufacture and sale of motorised two-wheelers in India and offers mopeds, motorcycles, and scooters. The company also exports its products to regions like the United States, the European Union, Africa, Latin America and Asia.

For FY13, the company’s net worth stands in the red, down by Rs 478 crore. Its stock has yielded a negative return of 38.60%.

Find More Articles on: DSIJ Others, Slide Shows, Markets, DSIJ Mindshare, Product, Large Cap, Mid Cap, Small Cap

collapse Related Readings collapse

DSIJ
Mindshare

Bulls Back On D-Street, Bankex On Upper Hand

Bulls Back On D-Street, Bankex On Upper Hand

The Indian markets witnessed a handsome move in today’s session. Majority of the sectoral indices recovered well. Bankex stocks were leading today’s rally, and index surges around 354 points. This was followed by Auto and Healthcare index, as they were also surges more than 300 points each.  The Nifty closed above major resistance level and was up by 111 point and closed at 8532 while Sensex was up by 409 point in today’s trading session and closed at 28114.

Gati's Net Profit tanks by 35.34 per cent in the June 2015 quarter

Gati's Net Profit tanks by 35.34 per cent in the June 2015 quarter

Gati declared financial results of June 2015 quarter. The company's total income from operations increased by 4.68 per cent amounting to Rs 416.24 crore in Q1FY16 as compared to same period in previous financial year. 

ITC Posts good Q1 result

ITC Posts good Q1 result

Recently, ITC announced its First Quarter FY16 result, the total revenue declined by 7.14 per cent to Rs 8587.7 crore compared to Rs 9248.29 crore year on year basis. FMCG-Others Segment registers revenue growth of 12.2 per cent amidst subdued demand conditions.

Petronet LNG Net Increases By 58% As Prabhat Singh Appointed As MD

Gail’s Director Marketing Prabhat Singh has been appointed as the MD and CEO of Petronet LNG. This post has been vacated by Dr. AK Balyan, whose tenure ended on July 16 2015.

Maggi ban pushes Nestle first time into loss in more than two decades

Maggi ban pushes Nestle first time into loss in more than two decades

The FMCG company Nestle India (NESTLEIND) announced its unaudited results on July 29 2015, for the second quarter as the half year ended on June 30 2015. The company reported a net loss of Rs 64.4 crore for the Q2CY15, as compared to a net profit of Rs 320.28 crore in Q1CY15. The company has been faced with a very unusual situation after the ban on its flagship product Maggi noodles during the quarter.

Index Trends And Stocks In Action July 31, 2015

Index Trends And Stocks In Action July 31, 2015

The Indian Equity Market continued its winning streak from the second successive session positive sentiments from the global market and short covering got the bulls progressing.

Market Likely To Open Flat To Positive

Market Likely To Open Flat To Positive

A SGX CNX Nifty Index future for July delivery was up 15.5 points at 8,488. Indian markets likely to open flat to positive. Aarti Drugs, Apcotex Ind, Archies, Cesc, Elgi Equipments, Force Motors, Godfrey Phillips, ICICI Bank, L&T, Shriram Transport Finance, Sun Tv, Tata Global and Titan would be reporting first quarter earnings today.

Indices Bounce Back On F&O Expiry

Indices Bounce Back On F&O Expiry

The Indian markets witnessed a good up-move in the last session of July F&O series expiry. The Sensex ended 141 points higher at 27705 while Nifty ended 46 points above its previous closing at 8421.

Wabco India's Net Profit jumps by 54.92 per cent in Q1FY16

Wabco India's Net Profit jumps by 54.92 per cent in Q1FY16

Wabco India (WIL) announced June 2015 quarter results. The company's revenue increased by 18.99 per cent to Rs 385 crore in Q1FY16 as compared to same period in previous financial year. 

Mphasis Net Profit slides by 12 per cent to Rs 156 crore in Q1

Mphasis Net Profit slides by 12 per cent to Rs 156 crore in Q1

Yesterday Mphasis announced its financial results for the first quarter ending 30th June 2015. Consolidated net revenues grew by 4.7 per cent to Rs 1496.41 crore as against Rs 1429.03 crore sequentially on a reported basis and net of rupee depreciation grew by 2.6 per cent in Q1 FY16.

Subscribe to
Newsletter

news letter

More for the early bird.

Get the pre-market reports and breakfast news right in your inbox. See latest »

Market
CHIT CHAT

What is your view on markets today?

500  Characters Remaining.
Please LOGIN  to post your comments or Click here to go back.
armaan malik Aug 01 12:55PM
Tips for share
Muthu Priya Aug 01 12:37PM
hai guys..anybody give tips to sell ma share
narmadha kannan Aug 01 12:23PM
u are a mental and loose and etcc.............
chitra devi Aug 01 12:22PM
mentals for nagajothi and susee siva nari
susee siva Aug 01 12:17PM
anybody give a tips to buy a good company share