GE Power has been among one of the worst performing stocks for over a month now. From its 52-week high of Rs.827 hit on 14th Feb’20, it is down today, hitting a new 12-year low at Rs.209.
The stock is hitting new lows everyday mainly on the back of major growth concerns.
On 21st Sept, the parent company - GE Company, announced that it plans to exit the new-build coal power market, subject to applicable consultation requirements.
GE’s Steam Power business will work with customers on existing obligations as it pursues this exit, which may include divestitures, site closings, job impacts, and appropriate considerations for publicly held subsidiaries.
This exit will impact the Steam Power business of GE Power India, which is huge. This business accounted for around 80% of the total order book of GEPIL, as of June 30, 2020, which stood at Rs.7,498 crore.