Last month, a big scam about Gensol Engineerin Share was revealed, after which the company’s shares continued to break and started putting lower circuits every day. The stock broke from Rs 2400 to Rs 60 during the last one year. This stock has fallen more than 95 percent. In such a situation, if someone has bought this stock on record high, then the money of that investor is almost clear.
If you also invest in any company by seeing similar growth, then you need to be careful. On the other hand, if any other such stock is in your portfolio, you can also identify it, that too before putting his lower circuit. Let’s understand how.
Veteran investor Abhijeet Chokshi has given his views on social media. He told about the structure and warning of collapse, which every investor should look to avoid becoming the next victim.
- Chokshi said that the fraud of the companies has been transferred from the niche cloud services to trendy areas like digital identity and healthcare IT and these companies are often promoted more than the strategy.
- If the promoters are mortgaging the share, reducing the share and dealing through complex subsidiaries. In addition, the continuous resignation of auditors indicates a serious issue. Despite the strong profits, the cash flow is weak, the debt is constantly increasing, even if these shares should be cautious.
- If there is a lack of transparency in the company’s transactions and the capital has been raised through QIP and warrant without using. The focus of media has increased the spirit without any concrete base in the award, interview and TV spots. Even then one should stay away from these shares.
- Financial figures showed incompatibility between standalone and consolidated figures, which disappeared the revelations and delayed filing. The worst thing is that even if high debt levels are hidden by hidden off-book liabilities, investments should be avoided in these companies.
Investor ruined in Jansol Engineering
Jansol, who once considered a promising bet for investment in the electric vehicle sector, has fallen by 95% in 2025, which has fallen from Rs 1,125 to Rs 60 and has been stuck in the lower circuit from 20 seasons. The nervousness among investors increased after the NCLT freeze all bank accounts and lockers associated with the company, its promoters and 34 concerned institutions.