Worst stocks of 2021: Hero MotoCorp, Ujjivan SFB, Spandana Sphoorty and others that burned investor money

SUMMARY

Worst stocks of 2021: The year 2021 has been good for the average investor on Dalal Street. Equity benchmarks Sensex and Nifty50 have broken a series of records in a liquidity-driven run, creating a slew of wealth makers for investors. On the other hand, some pockets of the market have punished investors, especially the uninformed kind. These stocks have thrown negative returns to the tune of more than 50 percent in some cases. Here's a list of stocks that have burned investors' money in the overall good year for the market.

By CNBCTV18.comDec 31, 2021 6:40:22 PM IST (Updated)

Ujjivan Small Finance Bank | Return: -52.7% | The stockhas been marred by poor earnings on account of a declining net interest margin and worsening asset quality. Ujjivan Small Finance Bank has also been facing attrition at the leadership level.

Strides Pharma Science | Return: -49.1% | Weak earnings on account of continued headwinds in its US business amid price challenges have impacted the stock. The pharma company saw a drop in demand after the pandemic on account of low prescriptions, high logistics costs and pricing pressures. However, the company hopes to start to witness improvement in the US operation from the third quarter of FY22.

Spandana Sphoorty | Return: -38.6% | Changes in leadership structure and attrition in the IT team has impacted Spandana Sphoorty shares. Buzz around the microfinance company's acquisition has caused ripples on Dalal Street.

RBL Bank | Return: -45% | The RBI's appointment of an additional director on RBL Bank's board and Vishwavir Ahuja’s stepping down ahead of the end of his current term raised concerns over the company's financials. The management has however maintained that these developments do not reflect the lender's fundamentals or strategy. Developments around the CEO transition and asset quality will be watched closely going forward.

Amara Raja Batteries | Return: -31% | A weak financial performance on account of the fallout from the coronavirus pandemic has hurt Amara Raja Batteries shares. Manufacturing and supply chain-related disruptions due to COVID lockdowns impacted the company's profitability.

Hero MotoCorp | Return: -20.8% | Production disruptions and lower sales on account of the pandemic along with raw material inflation have hurt Hero MotoCorp's profitability. A global shortage of semiconductor chips has impacted India’s auto industry.

Bandhan Bank | Return: -37.2% | Bandhan Bank earnings have been impacted by worsening asset quality. However, the management has exuded confidence that the asset quality issues due to the disruptions caused by the pandemic have been addressed.