X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
BSE A group: Flop 10 - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Apr 17, 2001

    BSE A group: Flop 10

    Trigyn has topped a list but Mr. Suresh Rajpal is certainly not going to be excited about it. It is number one on the list of top losers from the ‘A’ group of the BSE. Of the top ten loser companies (in percentage terms) over a year, the software sector has the doubious distinction of having seven of its companies while media has two and telecom has one. But all belong to the TMT (technology, media, telecom) or ICE (information, communications, entertainment) genre.

    So, what’s the big deal? Everybody knows this? Well yes and no. Yes, it is expected that most of the companies would be from the TMT family but what calls for a closer look is the name of the companies. One the very interesting point to note is that the so called new economy sectors have low entry barriers therefore anybody and everybody can start a ‘software’ firm but sustainability is a different story all together.

    Top losers over the year: BSE 'A' Group
    COMPANY PRICE ON PRICE ON % CHANGE 52-WEEK
    Apr 16, 2001 (Rs) April 17, 2000 (Rs) H/L (Rs)
    TRIGYN TECHNOLOGIES 62 1,485.0 -95.8% 1,485 / 54
    MASTEK 83 1,965.0 -95.8% 2,001 / 83
    DSQ SOFTWARE 67 1,397.5 -95.2% 1,655 / 53
    GLOBAL TELE 116 1,695.0 -93.1% 1,960 / 98
    HFCL 80 1,121.6 -92.9% 1,820 / 66
    PENTAMEDIA 62 838.6 -92.7% 975 / 51
    PSI DATA SYS 114 1,378.7 -91.7% 1,540 / 93
    ZEE TELE 77 925.6 -91.7% 1,050 / 71
    SILVERLINE TECH 61 636.1 -90.4% 743 / 51
    TELEVISION 18 91 822.9 -89.0% 927 / 85
    APTECH LTD. 117 925.2 -87.3% 1,073 / 88
    ROLTA INDIA 60 470.2 -87.2% 534 / 53
    SSI LTD. 476 3,585.7 -86.7% 4,202 / 390
    SAREGAMA 188 1,310.8 -85.7% 1,471 / 166
    HCL INFOSYS 65 453.6 -85.6% 520 / 55
    SONATA SOFTWARE 25 147.8 -82.8% 172 / 17
    SHYAM TELECOM 83 459.5 -81.9% 460 / 72
    INDIAN SHAVING 300 1,548.8 -80.6% 1,725 / 295
    HINDUJA FIN. 68 320.0 -78.8% 511 / 56
    WIPRO 989 4,536.8 -78.2% 5,300 / 763
    WOCKHARDT LIFE 15 70.7 -78.1% 77 / 15
    NIIT 464 1,974.8 -76.5% 2,525 / 407
    SATYAM COMP 190 751.8 -74.7% 875 / 160
    POLARIS SOFTWARE 216 847.1 -74.5% 1,230 / 170
    MAX (I) LTD. 84 326.1 -74.2% 354 / 71

    Another point that is very clearly visible from the list is that quality of management is by far one of the most important points that decide the value of the stocks. Some of the managements have been actually accused of colluding to hike share prices. These stocks figured in the once hot and now a bad word the “K-10” index. Others have been financial wizards siphoning of money and continuously writing off bad debts. And a new set that have of course kept on creating subsidiaries for “improved efficiency”.

    However, there are some companies like Mastek and Wipro that have a clean management but still figure in the list. Mastek has not been able to deliver. While the software companies have been posting superb growth rates the company has been posting very disappointing financials for two consecutive quarters. Wipro due to short supply of stocks has seen very high valuations, which have now come down to very realistic levels.

    The list no doubt lauds the ability of the markets to punish the wrong doers but at the same time highlights the inability to recognize them early on. There is one very very important lesson in here. There is not shortcut to success - neither for the companies, nor the investors.

    A skewed supply demand gap is certainly an opportunity but not a guarantee for success. Success has a price in terms of commitment, hard work and above all honesty. And wise investing calls for investing in those companies that will stand the test of time. And is it very difficult to say whether Infosys will be around in the next few years or not? The answer is a big no, and that could be the reason why it does not figure in the list.

     

     

    Equitymaster requests your view! Post a comment on "BSE A group: Flop 10". Click here!

      
     

    More Views on News

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    Infosys: A Flat End to FY17 (Quarterly Results Update - Detailed)

    Apr 13, 2017

    Infosys ends FY17 with a 7% QoQ fall in net profit for the March quarter.

    Infosys: A Decent Quarter (Quarterly Results Update - Detailed)

    Jan 13, 2017

    Infosys has reported a 0.2% QoQ decrease in the topline and an increase of 4.6% QoQ in the bottomline for the quarter ended December 2016.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    INFOSYS LTD SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK INFOSYS LTD

    • Track your investment in INFOSYS LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    INFOSYS LTD 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE INFOSYS LTD WITH

    MARKET STATS