9 replies on “The Biggest Wealth Destructors in India”
Thanks for this list. There are many more. This lists shows a mirror on SEBI for its inactions. Many of these companies may even be big NPAs for banks. At the same time, promoters of these companies may be sitting on some big money hoarded in some foreign locations. And most of them wont be caught because they will have the political patronage of one of the two major parties which have ruled, are ruling, or will rule at the Centre controlling all the investigating agencies.
However, I may not agree that these have destroyed wealth. That wealth was actually wrongfully created, which has been eroded. Since it is a zero-sum game, some unruly operators have increased their wealth, while small investors have lost. It is here that we look in sadness that despite having all sorts of laws and regulations in the country, we lag behind in their effective implementation due to regulatory slackness. This helps the insiders (promoters, management) flouting norms, the advisors manipulating the markets, the auditors not being independent and tactful etc, is only adding to the mess.
does this list account for stock splits?
R Power deserves a place in this honour roll –
sometimes it’s ok if a 10cr company goes from 100 to 1, but it takes a marathon runner to take a Rs 85K crore to a quarter of its size in flat 7 years.
Many companies in the list have at one point been recommended by Stock Experts/Analysts. Where is the liability on these people?
+1 for RPower!
Also wonder if this list has survivorship bias. There may be some infra cos (shudder) that have simply vanished since 2008…
Humbling. I was invested in 3 names here. Fee paid.
What will never come to light is the sell off of assets, land banks for instance– look at National Standard’s Lodha Thane deal where the investor got nothing and the company was allowed to quasi delist (by being barred for not keeping up with listing requirements).
Excellent data digging ,
this list surely deserves to be thoroughly audited and send to the finance minister, sebi chairman and Mr Modi , so that proper action can be taken against at least some of them so that they can be taught a lesson.
the analysis is good. but it would be worthwhile to dig deeper and know whether there were indicators which analyzed would have informed investors that company will destroy wealth instead of creating it.
Wealth destruction is probably a misnomer, usually its the small , gullible, emotional, greedy retail investor who’s left holding the paper. That the paper eventually reflects its try worth is not really wealth destruction, simply transfer.
Some of these names a still good; but out of favour and scorned now.
Disclosure, I’ve also sacrificed to the altar of greed in this list, hopefully have learnt a thing or two!
And there is def. survivorship bias here, I can see there some names missing 😉 RNRL, Cals Refineries (shudder)
Also a lot of infra names here, comments on contrarian bets anyone?
9 replies on “The Biggest Wealth Destructors in India”
Thanks for this list. There are many more. This lists shows a mirror on SEBI for its inactions. Many of these companies may even be big NPAs for banks. At the same time, promoters of these companies may be sitting on some big money hoarded in some foreign locations. And most of them wont be caught because they will have the political patronage of one of the two major parties which have ruled, are ruling, or will rule at the Centre controlling all the investigating agencies.
However, I may not agree that these have destroyed wealth. That wealth was actually wrongfully created, which has been eroded. Since it is a zero-sum game, some unruly operators have increased their wealth, while small investors have lost. It is here that we look in sadness that despite having all sorts of laws and regulations in the country, we lag behind in their effective implementation due to regulatory slackness. This helps the insiders (promoters, management) flouting norms, the advisors manipulating the markets, the auditors not being independent and tactful etc, is only adding to the mess.
does this list account for stock splits?
R Power deserves a place in this honour roll –
sometimes it’s ok if a 10cr company goes from 100 to 1, but it takes a marathon runner to take a Rs 85K crore to a quarter of its size in flat 7 years.
Many companies in the list have at one point been recommended by Stock Experts/Analysts. Where is the liability on these people?
+1 for RPower!
Also wonder if this list has survivorship bias. There may be some infra cos (shudder) that have simply vanished since 2008…
Humbling. I was invested in 3 names here. Fee paid.
What will never come to light is the sell off of assets, land banks for instance– look at National Standard’s Lodha Thane deal where the investor got nothing and the company was allowed to quasi delist (by being barred for not keeping up with listing requirements).
Excellent data digging ,
this list surely deserves to be thoroughly audited and send to the finance minister, sebi chairman and Mr Modi , so that proper action can be taken against at least some of them so that they can be taught a lesson.
the analysis is good. but it would be worthwhile to dig deeper and know whether there were indicators which analyzed would have informed investors that company will destroy wealth instead of creating it.
Wealth destruction is probably a misnomer, usually its the small , gullible, emotional, greedy retail investor who’s left holding the paper. That the paper eventually reflects its try worth is not really wealth destruction, simply transfer.
Some of these names a still good; but out of favour and scorned now.
Disclosure, I’ve also sacrificed to the altar of greed in this list, hopefully have learnt a thing or two!
And there is def. survivorship bias here, I can see there some names missing 😉 RNRL, Cals Refineries (shudder)
Also a lot of infra names here, comments on contrarian bets anyone?