HDIL Stock price has been falling from highs of over 500 before 2008 to less than 50 as on date

I am sure everyone is wondering why such a big fall? Below are few major reasons that i can think of
  • 96% 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.
  • High debt levels of over 2000 Crores.
  • Revenues and profits have dipped heavily in the last 5 years
  • Real Estate sector is out of favor and all the boom that happened before 2008 is being undone now.
  • Greedy management while piled up debt before 2008

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.