Mandatory article an Investor must read

Eveready Industries- Battery with no charge.
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Dear Investors,

I request you to exit this stock named Eveready Industries which is a part of Williamson Magor group


From the 52 week high of rupees 262.90, the stock is currently trading at rupees 69.15

Reason
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  1. Maintaining consistency in showing decreased profit
  2. Downgraded by India Ratings and Research on 1st July 2019 to IND BBB from IND A+
  3. High pledged shares
  4. Bad management practices
  5. Massive debt
  6. Defaults
For the past one year it has given 69.13 percentage of negative returns



  • Another highlight to be noted is that Yes bank dropped nearly 6% after picking up 9.47% of stake in Eveready.
  • It is to be noted that both companies McLeod Russel and Eveready belongs to BM Khaitan group of companies. Both companies are facing losses, financial crisis and hence they have pledged shares to manage current situation.



  • Yes bank acquired around 6.9 million shares of Eveready Industries on invocation of pledge after McLeod Russel defaulted it's loan

  • But one thing you need to make a note is that, Eveready Industries is also facing losses and the stock price is hitting many yearly lows continuously. 


  • Big question mark:

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So it is a big question mark for Yes Bank that whether this kind of action against defaulters will be a good move or not. But actually it's not a good move.

Pic Courtesy : Times of India

Valuation
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  1. The reason is, Yes bank might have overtaken those shares based on the rate of amount to be paid and share price. In case if share of Eveready goes below 10 and if it comes under the category of penny stocks then cash in hand for yes bank will get reduced.
  2. This way of acquiring shares of companies which are not financially good can make an impact on the firm which acquires it 

Thanks 
Sudharsun

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Comments

  1. DariyaSeptember 11, 2020 at 4:40 AM

    Nice post ! I am very interesting to read your blog content.Thanks for sharing.you may also check our blog
    Eveready Industries India Limited
    Eveready Industries India shares

    ReplyDelete

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