Indian Stocks that Destroy Investors Wealth
2 min read
Many Indian Stocks experience sharp declines, often due to company-specific issues, market-wide trends, or global economic factors. Some Stocks are the Darling of Investors at the beginning but end up becoming a joker of the stock market. ‘
Here are some Indian stocks that destroy Investor’s Wealth:
- Yes Bank:
Yes Bank is one of the most notable examples in India. In early 2020, the stock crashed by over 80% from its highs, primarily due to concerns over its bad loans, governance issues, and regulatory actions by the Reserve Bank of India (RBI). Mismanagement, rising non-performing assets (NPAs), and a sudden resignation of key management led to a crisis of confidence.
- Jet Airways:
Once a major player in India’s aviation industry, Jet Airways saw its stock price collapse by over 90% between 2018 and 2019. Financial mismanagement, rising debt, and the grounding of aircraft due to a lack of funds caused the airline to cease operations.
- Vodafone Idea:
In 2018-2019, Vodafone Idea’s stock saw a sharp decline of over 70%. The company struggled with heavy debt, increasing competition in the telecom sector, and regulatory challenges, including AGR (Adjusted Gross Revenue) dues.
- Unitech:
The real estate developer Unitech witnessed a stock price drop of more than 90% between 2010 and 2018. Unitech was involved in several legal disputes, including issues related to delayed housing projects, regulatory scrutiny, and its debt crisis.
- Kingfisher Airlines:
The airline, owned by businessman Vijay Mallya, saw its stock price plummet by over 90% during its closure in 2012-2013. Financial mismanagement, excessive debt, and the grounding of the airline led to its eventual collapse.
- Satyam Computer Services (Now Tech Mahindra):
Satyam’s stock crashed by over 90% in 2009 after it was revealed that the company had been involved in a major accounting fraud. The company’s founder admitted to inflating financial statements, leading to one of India’s biggest corporate scandals.
- DHFL:
DHFL’s stock crashed by over 80% in 2019. The company faced liquidity issues, and there were allegations of financial mismanagement, bad loans, and fraud. Eventually, the company went into bankruptcy.
- Reliance Communications:
RCom’s stock plummeted by over 90% between 2017 and 2019. The company’s mounting debt, regulatory hurdles, and competition from other telecom companies like Jio led to a major downfall.
