InvestorQ : Why did IDBI Bank and Glenmark correct so sharply during the week ended August 16. Can I buy these stocks at current prices?
indhumathi Sayani made post

Why did IDBI Bank and Glenmark correct so sharply during the week ended August 16. Can I buy these stocks at current prices?

Answer
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shrinidhi Rajan answered.
1 year ago


IDBI Bank, in fact, touched a 16 year low when touched the price of Rs.24 during the week. The sharp fall in IDBI Bank was driven by net losses of Rs.3800 crore for the June quarter as well as an 11% fall in the net interest income. Even the gross NPAs of IDBI Bank were up by almost 160 bps at 29.1% and that is not a very healthy scenario. The bank made provisions in excess of Rs.6300 crore during the quarter and that led to the stock correcting sharply. Regarding Glenmark, again it was a problem with June results. The June quarter profits fell by nearly 53% to Rs.109 crore. Most brokerages also cut their price targets and the stock is currently quoting at an 8 year low price.

While you can look to buy Glenmark Pharma from a long term time frame of 2-3 years, IDBI Bank is a stock that is best avoided. Chances of recovery are quite slim.