Multibaggers: A large number of stocks have given investors multibagger returns due to heavy liquidity in the market since the hit of COVID-19. However, not every share of Dalal Street has proved to be gold for investors. During the last 105 weeks, there are some names which have failed to give positive returns. This has come to the fore in a report by the Economic Times.
30 companies drowned huge amount of investors
According to data from Ace Equity, at least 30 companies have given negative returns to investors. In five of these companies, more than 65 per cent of investors’ money has been sunk so far.
Market participants said most of these stocks have had their own problems like debt, poor fundamentals and poor corporate governance practices, while the rest have been affected by weak consumer demand.
These 6 largecap stocks can give strong returns of up to 36%, including RIL and ICICI Bank
Shares broken due to specific problems
Sonam Srivastava, SEBI Registered Investment Advisor and Founder of Right Research, said that despite the huge rally in the post-pandemic fall and recovery across sectors, some stocks have failed to rise to pre-pandemic levels.
“While some of the decline may have been due to specific issues, the decline in large consumer stocks and financials points to a weakening in consumer demand and the wider impact of the pandemic on the financial services sector,” he said.
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Shares of Future Group suffered the most
Kishore Biyani’s Future Lifestyle Fashions topped the list with a decline of 78 per cent. The stock closed at Rs 36.8 on March 28, 2022, as against Rs 168.35 on March 23, 2022.
Future Group’s other stocks, Future Retail and Future Supply Chain Solutions, have lost 68 per cent and 66 per cent, respectively, during the period. On the other hand, both Future Consumer and Future Enterprises have lost over 40 per cent.
Hit hard by global factors
Neha Khanna, director, Walpro, a tech-based investment banking platform, said, “The losses in some stocks have been attributed to several factors. “The recovery has been hit mainly by global factors like geopolitical tensions, higher crude prices, supply concerns, increase in input costs due to rising raw material prices. The fall in the market is also due to overvalued stocks.
GE Power down 72%
The stock of GE Power India has fallen 72 percent from Rs 488.2 to Rs 138.3. After this, a weakness of 68 percent was recorded in the bank’s stock, which has fallen from Rs 39.75 to Rs 12.58.
Real estate company Omaxe has registered a decline of 47 per cent, while Spandana Sphoorti Financial has registered a weakness of 42 per cent.
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