The BSE Sensex fell 709.10 points to 80,741.91 points in the domestic stock market, while the Nifty slipped 196.00 points to 24,554.70 points. The domestic stock market has been seeing a steady decline for some time.
There are many such stocks in the stock market that suddenly fly up like a rocket and then fall and bang investors to the ground. A similar story is a share of Elcid Investments Ltd which used to make investors millionaires on its own at a time, but now the same stock has fallen 60% in 8 months. The investor of this stock had become a millionaire in 24 hours, now he has become pauper because the price of the share has reduced by half.
2 lakh rupees directly from Rs 100!
The name of Elcid Investments suddenly came into the limelight when its share suddenly reached ₹ 2 lakh from Rs 100. It gave tremendous returns to investors in a few hours. But now the same stock is trading around ₹ 77,902 and the process of decline in it remains continuously.
Why was so much share increased?
Actually, the real strength of Elcid Investments was hidden in his holding value. This company holds a stake in legendary companies like Asian Paints. In the beginning of 2023, its book value was estimated to be more than ₹ 6 lakh per share, while the market price was very low. This difference wooed investors and there was a huge demand in stock.
But what happened then?
After this fast, investors started recovery of profit due to low liquidity (low buyer-sell) and confusion of regulations. The company’s promoter group holds more than 90% of its share and the availability of its shares in the market is very limited. This led to low volume and declined rapidly.
Unlisted category and delisting discussions
Elcid Investments are seen as a long -harassed classic case as these shares are traded on BSE SME platform. Discussions have also been revealed to deliver it. Investors have difficulty in getting transparency and correct information.
The story of Elcid Investments tells that investing can be risky only by looking at the book value or holding value. Where the liquidity is low, there can be a sudden profit, but the loss is faster than that. Always keep distance from shares that lack regular information, high volume and corporate governance.