On May 30, the India Cements stock dived to a new 52-week low of Rs 67.60. In a span of 6 trading sessions the stock has plunged from Rs 90 odd levels to Rs 67, thanks to allegations of involvement of Meiyappan, Son in law of N Srinivasan, MD of India Cements in IPL betting.

Among the the biggest loser is LIC, which has a 6.74 per cent stake in the company.

But, investors in India Cements have consistently been losers even before the allegations of IPL betting surfaced. According to a report on firstpost.com, in the last five years, the Sensex rose 14.47 percent and India Cements shares fell 53.33 percent.

Apart from the IPL controversy analysts are worried over other issues at the company. According to a report in the Business Standard India Cements has lent huge advances to subsidiary companies. "There is lack of focus and purpose in the top management and the company seems to be in a drift. There is misallocation of capital and investment has not been coming for the right projects at the right time," a cement analyst told Business Standard. He also pointed out to the newspaper to the capital advances given to unlisted subsidiaries. At last count, the company had Rs 2,372 crore of outstanding loans to its subsidiaries and associates - this has more than doubled in the past four years.

But shareholders will have little respite. Ambareesh Baliga, managing partner, global wealth, Edelweiss Capital, was quoted in the Business Standard as saying "India Cements has hardly delivered any shareholder value in the past four years and, going by the current controversies, it's not going to go anywhere."

India Cements shares have not delivered in the past, but, the sad thing is that the IPL betting row has made performance of the stock even worse. Any which ways, bad luck for shareholders.

GoodReturns.in