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Poison Stocks in India

Poison stocks are companies that are expensively valued, have weak balance sheets, high debt, and are frequently loss making.

If you want to prevent large scale wealth-destruction, then stay away from poisonous stocks as far as possible.

Here's a list of poison stocks in India...

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CompanyCMP
(Rs)
Loss
(Rs m)
Total Debt
(Curr FY, Rs m)
Net Debt/ EBITDA
(x)
D/E
(Curr FY, x)
RoCE
(Latest, %)
RoE
(Latest, %)
P/BV
(x)
P/E
(x)
VODAFONE IDEA7.1312,3842,076,29812.2-2.0-4.7%0.0%NMNM
TATA STEEL139.549,096815,7393.70.94.4%NM2.067.6
RELIANCE POWER35.722,422187,65816.21.62.0%NM1.013.1
DISH TV10.819,66610.00.03.7%0.0%NMNM
UPL 546.918,780314,2406.91.33.4%NM1.7NM
GLENMARK PHARMA1,492.418,3099,9060.80.17.1%NM5.0NM
PIRAMAL ENTERPRISES1,060.816,835536,11117.92.00.0%NM0.9NM
FUTURE ENTERPRISES0.712,43770,19241.92.7-6.8%NMNMNM
TATA TELESERVICES68.512,284199,54437.8-1.0-6.2%0.0%NMNM
JAIPRAKASH ASSO6.49,635149,24139.2-5.81.4%0.0%NMNM
ALOK INDUSTRIES20.68,468260,076534.1-1.3-5.5%0.0%NMNM
GMR INFRA80.58,289352,84711.9-16.37.1%0.0%NMNM
RAIN INDUSTRIES149.17,96281,7344.91.12.3%NM0.7NM
SADBHAV ENGINEERING27.67,79941,31950.9-33.0-28.3%0.0%NMNM
ADITYA BIRLA FASHION & RETAIL289.27,35942,0522.81.11.7%NM7.6NM
UFLEX559.86,91267,1965.00.9-0.1%NM0.6NM
GTL INFRA2.16,81433,39514.0-0.7-2.4%0.0%NMNM
RELIANCE INFRA257.76,45698,2504.81.114.3%NMNM3.0
SHREE RENUKA SUGARS39.76,27257,7258.7-4.025.4%0.0%NMNM
GODREJ CONSUMER1,185.95,60631,5461.10.34.0%NM10.0NM
SADBHAV INFRA. PROJECT6.55,33336,89411.1-6.5-35.7%0.0%NMNM
PRIME FOCUS125.64,88539,30115.611.8-0.8%NM9.0NM
WOCKHARDT1,187.04,72021,12054.20.6-2.7%NM4.4NM
KESORAM IND205.43,84122,6736.423.99.7%NM724.9NM
GREAVES COTTON174.53,6734930.50.0-18.6%NM3.0228.4

* We show NM where the values are negative

Disclaimer: This is for information purposes only. These are not stock recommendations and should not be treated as such. Learn more about our recommendation services here... Also note that these screeners are based only on numbers. There is no screening for management quality.

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Which are the poison stocks in India right now?

As per Equitymaster's Stock Screener, here is a list of poison stocks in India right now...


These companies have been ranked as per their reported losses of latest financial year.

What is Poison Stocks?

Poison stocks are companies that are expensively valued, have weak balance sheets, high debt, and are frequently loss making.

How do you know if a stock is expensive?

One of the quickest ways to gauge whether a stock is expensive is to compare its valuation ratios to the rest of its industry or its historical average. If it is trading above these numbers, it is expensive.

What are the other important parameters to consider when looking at valuations?

One popular ratio, other than PE, is the Price to Book Value ratio (P/BV). This is particularly useful when evaluating banks and financial companies. You can access a list of the most attractive stocks based on P/BV here...

EV to EBITDA (Enterprise Value to Earnings before interest, taxes, depreciation and amortization) ratio is also another popular ratio used in the valuation of service companies or companies that are yet to turn profitable.

Enterprise value is a company's total value. All ownership interests and asset claims from both debt and equity are included.

The thumb rule is that a company with lower EV/EBITDA is more attractive.

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