If You want to save money then stay away from these stocks.

          Today we will talk about those companies that sink in huge debt for what there is a fear of bankrupcy of those companies. It means that financial conditions of those companies are too bad. 

If You want to save money then stay away from these stocks.

         Let's start with Vodafone Idea or VI. Vodafone idea has 125000 crore rupees debt on it. And this amount is more than its market cap. If you watch profit & loss statement of vodafone idea then you see that company is making losses from last 3 years. In FY 2017 VI company made 400 crore rupees losses.

In Financial Year 2018 company made losses of 4168 crore rupees. In FY 2019 vi made 14608 crore rupees losses. And the company made loss of 4874 crore rupees only in the first quarter of financial year 2020. Vi continuously is going in losses. And thus if company runs its program then how company repay its debt that is more than its market cap? 

              If you watch its market cap then you see that its market cap is only 18500 crore rupees. Obviously you understand how much did vi increase its debt? Interest is increasing as well as for not repaying the debt in time to time.  And if it is going on then vi have to face huge problems and the company may be bankrupted. 

           Next company is YES Bank. The burden of this company is about 336034 crore rupees debt. If you observe the profit & loss statement of yes bank then you see that the profit of yes bank is 3330 crore rupees in financial year 2017.

In FY 2018 company made profit of 4224 crore rupees. In FY 2019 the profit of yes bank is 1720 crore rupees. The condition of the company is falling down from the last quarter of 2019. Company made loss of 1506 crore rupees in the last quarter of 2019. It means company's performance is going in sluggish. Beside this company have to face the problem of liquid crunch. 

            The market cap of yes bank is 10000 crore rupees. But the debt of yes bank is 336034 crore rupees. Recently yes bank declared that some of their loans may become default. If it happens then company have to face huge problems. Now bank's condition is too poor and struggling problems.

               Another company is Jaiprakash Associates. The debt on this company is also huge and it is about 28000 crore rupees. The company made loss since last 7 years. You can see its losses in below. 

As the company can't make profit then how they repay their debt? And the debt is not little it is huge amount. If thus it continues then jp associates have to file bankruptcy. 

        Next conpany is Reliance Power. The debt on this company is about 30000 crore rupees. And the company's performance is very bad from some last years.

Now it is interesting to watch how they decrease their debt. Recently its share's price is 2 rupees. Again you are informed that you should not buy stocks only seeing low share price. At first do full analysis of company then invest in it.

            Next another company is DHFL. About it have the burden of 93000 crore debt. And the company faces huge cash crunch. In FY 2019 dhfl made 1036 crore rupees losses.

And 93000 crore rupees is a big figure. Let's see how dhfl repay its loan in spite of having huge cash crunch? Not only financial condition but also management is very bad. For this two reasons company's share price touches 20 rupees from 600 rupees.
If they can not solve the cash crunch problem then it may be bankrupt soon. 

          If you have any query related to the topic please comment below so that the topic can be covered.

Best wishes to invest.

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