2/ We are sure many people are feeling powerful these days. After all, the markets are up.
3/ Stock picking is easy too but inflation and taxes would eat away most of our returns.
4/ Some companies struggle to meet working capital requirements yet they splurge on capex. It’s like plugging holes in a sinking ship.
5/ Just when Axis Bank investors thought they were out of the woods, this happened.
The company posted a loss of Rs. 5,700 crores after acquiring Citi India’s consumer business. I guess it will take some time for Axis bank to get back up from that blow.
6/ You may think fast food chains are profitable.
But due to slim profit margins, it is hard to run one without intense belt-tightening.
7/
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Gensol Engineering soared on the back of EV & solar ambitions, but its story has taken a dark turn. From aggressive expansion to liquidity stress, governance issues, and stock manipulation allegations—investors are learning the hard way.
This post breaks down what went wrong and the key lessons for investors. Keep following the thread!
Rise & reality
✅ 6x revenue growth in two years (₹160 cr in FY22 to ₹963 cr in FY24)!
✅ EV leasing business expanded to 8,300+ vehicles
✅ Claimed solar EPC order book of ₹7,000 cr
✅ 12x share price growth between Mar’22 and Feb’24
⚠️ But what’s behind this growth?
❌ Total debt surged from Rs 82 crore to Rs 1,397 crore in 2 years
❌ Liquidity stress & corporate governance issues
❌ ICRA downgraded it to ‘D’ on March 4, 2025.
Red flags before disaster 🚩
⚠️ Stock manipulation allegations
- Linked to Mahadev betting scam.
⚠️ Deteriorating balance sheet strength
- Debt-to-equity jumped from 0.3x (FY21) → 4.3x (FY24)
- Strong liquidity claims by management didn’t match reality.
⚠️ Unrelated diversification
- Shifted from solar EPC to EV leasing & manufacturing.
- Now scaling down EV leasing due to financial strain.