Wealth Destroyer: This stock crashed almost 50% of investor wealth just this year

livemint.com:

₹46.80 in December 2023 to currently trade at ₹24.13, implying a decline of as much as 48.4 percent. An investment of ₹1,00,000 in December last year would have decreased to ₹51,600 now. The stock has already shed 9.5 percent in February so far, extending losses for the third straight month.

Before this, it tanked 42.6 percent in January 2024 and almost 36 percent in December 2023. Sanmit Infra hit its 52-week low of ₹24.13 in the previous session and has cracked almost 75 percent from its record high of ₹94.74, hit on July 18, 2023. Meanwhile, in the last 1 year, the stock is down 64 percent.

However, in the long term, the penny stock has given multibagger returns. It has rallied 132 percent in the last 3 years, jumping from ₹10.40; and in the last 5 years, the scrip has skyrocketed over 810 percent from ₹2.65 in February 2019. The Indian market has been very volatile and in turn given a muted performance so far in 2024, despite hitting record highs in January.

While on the one hand, hopes of rate cuts in the near term, improving inflation, and decent December quarter earnings have kept the investors positive. However, consistent FPI selling, a rise in US bond yields, and weak global trends have capped the positive sentiment. Sanmit Infra Limited engages in the distribution of petroleum in India.

The company operates through three segments: Realty and Infrastructure, Petroleum, and Trading. It offers petroleum products, such as lubricants, public distribution system kerosene, furnace oil, light diesel oil, base oil, and bitumen. The company provides a microwave disinfection system for the disinfection of biomedical waste/hospital waste.