You can look at companies like Vakrangee, Infibeam, Arshiya, Lakshmi energy and Parekh aluminex (both not listed as of now), Som distilleries, Lux inds which are recent examples. In bull markets all the sins are forgotten and stock prices often mount rallies, but once shit hits the fan, these kind of companies crumble. All of them cannot be painted with the same brush, but when we have so many good companies to choose from, why bother with the poor quality companies.
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