From Lanco Infra to Amtek Auto: Junk debt-heavy stocks, analysts tell investors

Given the debt, analysts see a bleak future for such firms and suggest investors steer clear of them

Lanco Infratech on Tuesday hit a record low of Rs 1.70, down 10 per cent, extending Monday’s 20 per cent decline on the BSE, after the company said the Reserve Bank of India (RBI) had directed its lead lender, IDBI Bank, to initiate the corporate insolvency resolution process for the company under the Insolvency and Bankruptcy Code .
 
Stock prices of seven of the nine listed entities (on the Reserve Bank of India’s most-indebted companies’ list) have seen price erosion of up to 40 per cent in the past one week. Besides Lanco, Amtek Auto, Bhushan Steel, Electrosteel Steel