Updated on 13 Aug 2016
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Can you invest in stocks lost more than 50%
Shares of many BSE500 firms, which had rallied up to a mind-boggling 75,000 per cent in early years of this millennium (between 2001 and 2006), faced rough weather in the past decade. As fundamentals changed, prices of these stocks peaked and it looked unlikely that they would see those glorious peaks anytime soon.
Data available with corporate database Capitaline showed about 100 companies from the BSE500 pack, which were listed 10 years ago, generated returns of anywhere between 1,000 per cent and 76,000 per cent during the five-year period.
The BSE Sensex, too, had a dream run during the bull phase, as it jumped 10,524 points to close calendar year 2006 at 13,786.91 compared with 3,262.33 at the end of 2001. This meant a 322 per cent surge.
However, while the Sensex managed to double from the 2006 level in last 10 years, some of those multibagger stocks have been trading at up to 95 per cent below their peak levels.
One such stock is Unitech. It was trading at 0.30 paise at the end of 2001. By the end of 2006, it was at Rs 229.88, a whopping 76,526 per cent return or 777 times jump. The stock extended the rally and peaked at Rs 546.80 on January 2, 2008.
It now trades below Rs 7 per stock. Total debt of the realty major swelled to Rs 10,848 crore by the end of FY09 compared with Rs 152.75 crore in 2001, before falling in recent years.
Aban Offshore traded at around Rs 7 in 2001. By the end of 2006, it climbed 18,000 per cent to Rs 1,382.65. But it was just the beginning. The stock zoomed to Rs 5,555 on November 20, 2007. A slowdown in exploration and production activity pulled down the stock price, which trades just about Rs 200 level now.
BF Utilities is another such stock. It ended the year 2006 at Rs 2,883.45 against a mere Rs 4.5 at the end of 2001, recording an phenomenal growth of 64,000 per cent. The stock hit its all-time high of Rs 3,395 in November 2006 but now trades at Rs 528.90.
Praj Industries is trading lower than where it was trading a decade ago. The stock hit a record high of Rs 273.45 in December 2007. It now trades 70 per cent below its peak.
The following are some of the multibagger stocks from the 2002-2006 but came down in the past decade: