Five Nifty500 stocks witness over 50% decline: Know the reasons behind the fall of Akums Drugs, Honasa Consumer, Chennai Petroleum, Cochin Shipyard and Raymond’s Fall

The Indian stock market has been moving mostly southward after it made an all-time high in September. Both the frontline indices have plunged about 10% from their peak and the NIFTY50 index slipped below its long-term moving average of 200-DMA on November 18, 2024. However, on November 19, 2024, it reclaimed its 200-DMA amid broad-based buying seen in the market.

Talking about the broader index, the NIfty 500 index has plunged 9.75% from its record high to the 200-DEMA level. Nine of its 500 constituents have fallen more than 50% from their respective 52-week highs. Here are the five that have fallen from recent peaks: Akums Drugs & Pharmaceuticals, Honasa Consumer, Chennai Petroleum Corporation, Cochin Shipyard, and Raymond.

Know why these stocks are falling with such pressure

Akums Drugs & Pharmaceuticals Ltd

In Q2, consolidated revenue stood at ₹1,047 crore, up 2% QoQ but down 12% YoY due to muted demand, falling API prices (e.g., Amoxicillin, Paracetamol), and reduced order frequency as customers await price stabilisation. Prior higher revenues from outsourced product development also impacted comparisons. Adjusted EBITDA margin declined to 12.9% (from 15.8% YoY), while adjusted PAT margin improved to 6.4% (from 5.2% YoY).

Recently, Akums Drugs and Pharmaceuticals entered into a license and distribution agreement with Canada-based Triple Hair to secure exclusive rights to further develop and market the Triple Hair products in India. On Tuesday, November 19, the company entered into an exclusive master sales agreement with Caregen Co. Ltd, a leading South Korean company in the nutraceuticals segment.

Honasa Consumer Pvt Ltd

Shares of Mamaearth-parent Honasa Consumer fell as much as 18.5% on Tuesday to a record low of ₹242.35. The stock has lost 31% in two sessions since it posted a Q2 loss and fall in revenue.

Honasa’s Q2 performance was disappointing due to an inventory correction (an adjustment in the company’s inventory to explain theft, broken products, loss, or other errors) of ₹630 crore in the general trade channel. Consumer shifts and preferences on the online channel also contributed to the stock's weak sentiment. The stock is down 35% so far this month, set for its worst month since listing a year ago.

Chennai Petroleum Corp. Ltd

The company reported a standalone net loss of ₹629 crore for the quarter ended September 30, 2024, compared to a net profit of ₹1,191 crore in the corresponding period last year, amid a sharp decline in revenue. Revenue from operations dropped 28 per cent to ₹14,425 crore in Q2 FY25, down from ₹20,010 crore in the year-ago quarter.

Cochin Shipyard Ltd

The shares of Cochin Shipyard fell after the government announced its plans to offload about 5% of the stake at discount. In the quarterly result of Q2 FY25, the net profit increased by 4% YoY to ₹189 crore in Q2 FY25, up from ₹182 crore in Q2 FY24. The revenue from operations surged by 13% on a YoY basis to ₹1,143.2 crore in the September quarter of FY25, compared to ₹1,011.7 crore in the same quarter of FY24.

Raymond Ltd

The stock price of Raymond started falling after the public issue of Raymond Lifestyle. The company's Q2FY25 saw revenue growth of 115% YoY to ₹1,101 crore from ₹512 crore in the previous year. It posted an EBITDA of ₹172 crore, with an EBITDA margin of 15.6%. The company recorded a profit of ₹59.01 crore, a decrease of 63.38% from ₹161.16 crore reported in the same quarter last year.