Equity / Stocks - Why Suzlon Failed & Share Price is Going Down in MARKETS - I have watched Suzlon fall from highs of over 400 in 2008 to lows of 11 till date and we ...
I have watched Suzlon fall from highs of over 400 in 2008 to lows of 11 till date and we should soon see it enter single digit.
Last year, we gave a sell or Avoid call on Suzlon when it was at around 55.
I am sure everyone is wondering why such a big fall? Below are few major reasons that i can think of
99% of Promoter Stake is Pledged. It was the same case with Satyam. This i believe is the single most reason for such a fall. Always, stay away from a company whose promoter stake is pledged.
They have high debt levels of over 6000 Crores and has always made losses in the last 5 years.
Bad Management, going for un-necessary acquisitions, pledging their stake and so on.
Just stay away from such companies. Never try to get into such stocks. Believe me, there are much better investor friendly stocks to invest your hard earned money in.
Watch the Below video to understand how to check whether promoter stake is pledged.