Postmortem... What went Wrong - yembee

There are so many sites which gives research reports ... But rarely we find a place to analyse failed expectations which ended in a disaster

Aim of this thread is to discuss and learn from such companies... How to avoid investing such companies

What were the red flags ignored

 

1.SUDAR INDUSTRIES

A typical case of how increased debt can kill a company... 1000Cr Turnover company operating in Textiles Pharma Minerals ....

 

Typical Red Flags

1. Low promotor holding
2. Increased debt to Equity ratios
3. When a Share looks very undervalued, suspect there is something which market knows and we dont
4. When price slumps so much ... Promoter not buying back shows lack of confidence

 

very good example sir ...promoter also sold his stake nearly 12% in one year sir

 

@yembee @RAMA MURTHY SASTRY CHALLA

Even I had bought SUDAR at 27 but later lost my confidence due to cash problems and sold at 50

 

A Look at the Financials one could have avoided it totally

 

Looks like a dangerous stock