Debt is not a bad thing for the companies, however, excessive debt is bad. As an investor, you should be aware of most debt companies, so that you can trade cautiously or stay away from such companies. Most debt companies mean companies with an excessive debt level. As these companies are under excessive debt they can correct sharply with the market correction. Most debt companies are not advisable for trading or for investment.
Recently I have shared detail about Top Debt-Free Companies and Cash Rich companies for investment. Today I will share detail about most debt companies of India. In addition, to this, I will also share information about most illiquid stocks scrips.
Most Debt Companies of India
(1) Reliance – ADAG Group
Reliance ADAG Group is on the first list of most debt companies of India. As per latest report, total debt on Reliance ADAG group is 1.25 Lac Cr (1.25 Trillion). Anil Ambani is working towards restructuring of companies however it is better that one should stay away from making any investment in Reliance ADAG group.
Reliance ADAG group includes stocks of Reliance Communication, Reliance Capital, Reliance Power and Reliance Infrastructure.
Vedanta group of companies are second in the list of most debt companies of India. As per the latest report by Credit Suisse – House of Debt Vedanta group is under a debt of 1.03 Lac Cr (1.03 Trillion). Vedanta Group is managed by Mr.Anil Agrawal. As per me, you should stay away from making any investment in the stock of Vedanta.
Adani Group of companies is managed by Mr.Gautam Adani. Adani is also in the list of most debt companies. As per report, total debt on Adani group of companies is 96031Cr. It seems the company is doing business by only taking loans. You should stay away from making an investment in Adani Enterprise.
(4) Jay Prakash Associates
Jay Prakash Associates or Jaypee Group is next in the list. Jay Prakash Associates is involved in multiple businesses like real estate, power and cement. This company is managed by Mr.Manoj Gaur. Total Debt on Jay Prakash group of companies is 75163 Cr.
JSW is also in the list of most debt companies. JSW is in the business of steel. Due to major fall in steel price, this company is under extreme pressure. Total debt on JSW steel is 58171 Cr. It is advisable to stay away from JSW steel stock.
Image Source – Livemint.com
Most illiquid stocks scrips
What is illiquid Stock?
- Most illiquid stocks are those that can’t be sold easily.
- A volume trading on these stocks are very low.
- Trading or investing in these stocks means inviting huge risk, as you will not find buyers for these stocks easily.
BSE and NSE have issued separate circular cautioning trader to stay away from illiquid stocks. This circular says “Trading members are advised to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients.”
This circular also includes a list of 357 illiquid stocks where trading is very minimum. These illiquid stocks include following stocks.
Action Financial Services India Ltd
Adinath Bio-Labs Ltd
Aditya Ispat Ltd
Agio Paper & Industries Ltd
Amco India Ltd
Archana Software Ltd
B. P. Capital Ltd
Bio Green Papers Ltd
Blue Chip India Ltd
Cochin Malabar Estates & Industries Ltd
DCM Financial Services Ltd
Dhenu Buildcon Infra Ltd
Gayatri Sugars Ltd
Indo Asia Finance Ltd
Jindal Capital Ltd
Nimbus Foods Industries Ltd
Pradip Overseas Ltd
Zenith Computers Ltd
Over to you –
Stay away from most debt companies and illiquid stocks. Trading and investing in these stocks means taking a blind risk of your hard earned money.
What are your views on most debt companies and illiquid stocks? Do share in the comment section!