Parsvnath Developers slip 20% at start; hits month-low

Parsvnath Developers slip 20% at start; hits month-low
Leading real estate company, Parsvnath Developers slipped 20 per cent on Bombay Stock Exchange during the early morning trade on November 18, 2011, following the overall selling pressure across Realty sector as investors remained dubious over the falling sales of real estate companies. High interest costs as well as fall in new projects implementation in the economy, continued to weigh heavily over such companies.

Hitting the month-low, shares of the company plunged 19.99 per cent to Rs 58.25, from the previous close of Rs 72.80. The stock opened at Rs 71 on Bombay Stock Exchange.

High interest costs have remained stone in the eyes of real estate companies as RBI has raised key rates 13 times since March 2010. Following the high cost of funds, operating profits of the company had decreased 30 per cent to Rs 68.8 crore during the quarter ended September 30, 2011. While net profits also plunged over 41 per cent to Rs 29.08 crore for Q2 FY12.

The fall in shares was also instrumental in overall decline in realty index as the BSE Realty was trading at 1,585.35 points, down 2.92 per cent at 10:43 AM.

Read more about: parsvnath developers, bse, realty, economy, rbi
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