Why Dhfl Share Price Going Down.?
Dhfl Share Price Falling Introduction
DHFL Share price fall; This is the one stock where Investors have made a lot of money and lost huge wealth also. DHFL stock price was trading over Rs. 700 but recently it has touched its 11 year low. Why DHFL Share price falling is the question which bothers almost every investor?
Don’t worry we have come to tell you all your doubts and clear your confusions. There were many mistakes done by this housing finance company which made the stock go down. We will discuss all those factors which harmed this awesome and If there is any hope of its revival.
Should you Invest in DHFL or Sell your positions? Sit tight let’s see what made the stock lose its value.
Why Dhfl Share Price Falling?
Missed Interest Payments
Though this is not the first time when DHFL has missed an interest payment. Few months back in June, DHFL had missed an interest payment of around Rs. 960 crores after which the stock had taken the downward journey.
Whenever something like this happens, Investors start feeling insecurity that’s why they start pulling their investment money.
A big Company like DHFL is not supposed to default on interest payments. After the interest payment, default credit rating agencies like CARE & CRISIL has downgraded its bonds to the default status.
A default status disables the company’s ability to raise capital in the future.
Stopped Taking Fresh deposits
Second most important factor which hit the market sentiment was a decision from DHFL that they have stopped taking any fresh deposits from its customers and freeze the existing investments.
The freeze on premature withdrawal hit the market sentiments and Investors started avoiding the DHFL Share. The customers of DHFL started feeling betrayed due to this.
Due to this insane decision, DHFL Share price started falling.
Third decision the made DHFL share price fall was stoppage of lending loans. Recently the company announced that DHFL is stopping their loan disbursement services.
Now if the company won’t disburse any loan how will they earn to pay for their loans and Interests. This decision sent the wrong message to the customers and Investors.
The distress in the company was clear to both the parties which made it lose several points from its share price.
Lookout Notice against the Promoters
Though companies insane decisions were enough to destroy the investor’s sentiments to not invest in the company but maybe the Government of India was not satisfied with them. So they issue ‘Look Out’ notice against the promoters.
Lookout notice means that promoters can not leave India and go abroad. With the experience Investors and Customers, both are very clever because they know these things have become common these days.
All these bad news made the stock fall below everyone had ever expected. Once the stock was trading around Rs. 700 but now it has fallen to this
So this was all from our side. Though the DHFL is one very strong firm but we don’t advise you to enter at this time. The company’s overall cash flow situation has already been deteriorated to support the firm’s ongoing expenditure.
The company is not even able to pay its Interest; GOI’s lookout Notice is another thing to bother about.
If you were thinking about to invest in DHFL Share, I won’t advise you to do that until or unless you can see something awesome in the firm which other experts can’t.