52-week loser: Orbit Corporation

With a 58 per cent decline over the last one year, the stock of Mumbai realty player Orbit Corporation is among the top losers. The stock has fallen 23 per cent in the current month alone, beaten down by concerns over interest rate hikes and its impact on developers as well as home buyers.

Orbit Corporation was among the few real estate companies that made a convincing comeback in FY-10 post the meltdown. While sales expanded 72 per cent to Rs 487 crore last fiscal, net profits jumped 155 per cent to Rs 96 crore.

However, the first half of FY-11 has been lacklustre as profits declined by 15 per cent. While the numbers may appear uninspiring, Orbit Corporation is known for lumpiness in its revenues. Other metrics such as profit margins as well as leverage suggest that the company has been improving over the quarters. For the September quarter operating profit margins rose to 48 per cent from 42 per cent a year ago, on account of better realisations. Average realisations in its Napean Sea Road project in Mumbai for instance rose by 20 per cent in September, over a year ago. However, marginal corrections in some pockets of Mumbai in end-2010 could mean that the company may not sustain high margins.

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