Lost in transit

Financial mismanagement and governance issues have taken the wind off Arshiya’s sails for good

Soumik Kar

It’s the stock market equivalent of a train wreck — enormous damage and bystanders watching in fascinated horror. In December 2012, Arshiya International was one of the top five stocks Kotak Securities recommended for 2013, assigning a target price of ₹188 — it was trading at ₹120-130. Just a few weeks later, wham! A report in a national daily sent the stock crashing into the lower circuit on January 9. By March 12, it had declined to ₹29.65, an over 76% fall. Most brokerages have suspended coverage of the stock now and the future looks singularly bleak. Could one small news item really do so much damage to a stock or is there more to the Arshiya story than meets the eye?