Unitech has fallen from highs of over 500 to 25 as on date.



I am sure everyone is wondering why such a big fall? Below are few major reasons that i can think of
  • 75% 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. Currently, Unitech has 2500 Crores of debt.
  • Revenues and Profits have dipped heavily in the last 5 years.
  • Promised time line of delivery of flats and houses has not been met tarnishing their brand value.

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.