BackHere are stocks investors avoided in 2019 so far, even at rock bottom pricing
Traders have resorted to panic selling, often at rates even less than a rupee, some over reports of allegations of fraud and others over poor corporate governanceCox & Kings turned out to be the biggest wealth destroyers
PremiumMumbai: Apart from the general weakness in the financial markets at present, sharp fall in some prominent stocks have caught the retail investors by surprise.
Traders have resorted to panic selling, often at rates even less than a rupee, some over reports of allegations of fraud and others over poor corporate governance or fast dwindling financials.
Such companies even saw the foreign investors lowering there bets on them over a period of time.
One such stock, Cox & Kings, turned out to be the biggest wealth destroyers in the past year.
The travel company stocks saw an erosion of over 98 per cent of its share value in barely an year, amid rating downgrades and a series of defaults on payments towards maturity of Commercial Papers (CPs).
CARE Ratings downgraded ratings of the company, stating that the rating strengths are tempered by exposure of the company's travel business to macro-economic factors prevailing in the markets to which it caters and the fragmented nature of the domestic travel industry.
Brickwork Ratings took into account the continued high levels of pledge shares by the promoters and low market capitalization while downgrading the ratings.
Cox and King's stock price fell to ₹3.10 apiece on 11 September, its lowest ever from a high of ₹223.40, last year and selling is still witnessed at this level.
Foreign Portfolio Investors (FIIs) holding in Cox and Kings decreased by 3.24 per cent in June quarter. The number of FIIs holding stake in the company has decreased to 99 from 103.
Scrip prices of gym and fitness chain, Talwalkars Better Value Fitness fell off the cliff from ₹65.50 apiece an year back to ₹5.51 on 11 September over violation of SEBI and exchange regulation.
Besides, it failed to pay the annual listing fees.
The 25-year-old yarn maker, Spentex Industries, which is now reduced to ₹0.73 apiece is still witnessing selling over such levels.
The company was caught up in major financial troubles since 2015.
Another prominent name that caused massive wealth erosion was Yes Bank. The private lender is also one of the most volatile stock on the exchanges.
Yes Bank lost nearly 80 per cent of its share value in the past year, over multiple rating downgrades ever since it logged its first ever quarterly loss.
Besides the stock was punished for having significant stake in the fraud hit CG Power.
From ₹328.95 apiece on 19 September, 2018 Yes Bank scripts fell to its 52 week low of ₹53.15 last month.
DHFL saw its finances dwindle ever-since, investigative news portal Cobra Post alleged that DHFL was involved in a fraud.
It missed paying interest on crores of rupees worth of Non-Convertible Debentures (NCD). Rating agencies were seen downgrading company's debentures, bonds, commercial paper and other credit instruments.
DHFL lost over 94 per cent of its share value within the span of an year. From ₹623.65 apiece on September 14 last year, DHFL fell to ₹37.10, last month to log its 52 week low.
Indiabulls Housing Finance, in the last year has too witnessed a significant loss of market cap owing to allegations of misappropriation of fund.
Indiabulls lost over 67 per cent as it slipped from ₹1,237.75 a share on 14 September to ₹406.20 apiece earlier in the moth to hit its 52-week low.
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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
