Amtek Auto shares fell as much as 38 per cent on Thursday before ending with a loss of 35 per cent. Amtek Auto shares closed at Rs 31.50 apiece, marking its fourth single-day loss of more than 20 per cent in a month.
Amtek Auto shares witnessed sharp selling pressure post 1.30 p.m. today and fell with large volumes, with 89.65 lakh shares traded today compared to its two-week average volume of nearly 35 lakh shares on the Bombay Stock Exchange.
"Continuously we are witnessing build-up of short positions...the stock has broken its immediate support of Rs 45 today," Chandan Taparia of Anand Rathi Securities told NDTV.
Higher open interest along with such massive fall in price suggests fresh short build-up in the counter and there are no signs of any pullback, said Mr Taparia. The stock may fall to Rs 29 levels, added Mr Taparia.
Amtek Auto shares have lost nearly 80 per cent of its value in last one month.
Selloff in the Amtek Auto shares started amid worries over its high level of debt, operational performance and its exclusion from the derivative segment at October series-end.
In a clarification to the stock exchanges, Amtek Auto on August 20 said, "There is temporary cash flow mismatch in the company and to mitigate the present situation, the promoters have already infused Rs 750 million and if required in future will also infuse more funds."
In the June quarter, Amtek Auto posted a net loss of Rs 157.6 crore as compared to net profit of Rs 86 crore in the corresponding quarter because interest costs more than doubled to Rs 237 crore against Rs 115 crore year-on-year.
Amtek Auto is reeling under high debt, which impacted the auto component maker's first quarter performance, analysts say. Amtek Auto's debt to equity ratio of about 1.5 times is among the highest for auto component makers across emerging economies in Asia Pacific, according to StarMine data.
In the clarification to the exchanges, Amtek Auto also said its "management remains confident in the company's abilities to capitalize on opportunities arising out of a stronger recovery in the Indian automobile industry over the quarters to come. The management re-iterates that the long term fundamentals of the company remain strong."
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