This Stock Is Down 50% In 7-days, Should You Buy?

It's hard to see your wealth in a particular stock erode by half in just 7-days. The stock of Dhani Wealth has plunged more than 50% in just 7-trading sessions and has been one of the worst performing stocks during this period.

The Dhani Services stock is down from 52-week high levels of Rs 378 to the current market price of Rs 67, which means its just a fifth of its value from March of last year. On Feb 24, 2022 the stock was last seen lower by 10% at Rs 67.10 on the Bombay Stock Exchange. In fact, the Dhani Services shares were locked at the lower end of the circuit filter of 10%.

On the same day, the BSE had sought clarification from Dhani Services Ltd, with reference to news appeared on a website quoting "Hundreds Fall Victim To PAN Identity Theft On Dhani App". There has been no response as yet from the company.

Earlier, Dhani Services had informed the stock exchanges that Jasmine Capital Investments Pte. Ltd and Tamarind Capital Pte. Ltd had collectively reduced their stake by 2 percentage points
Dhani Services was earlier 'Indiabulls Ventures Limited' and provides technology enabled subscription based healthcare and transaction finance services through its Dhani App.
Dhani Services Ltd is a consumer business that operates through it's app Dhani and provides digital healthcare and digital transactional finance to it's customers.

The company also has a personal finance segment that offers a range of products across both healthcare and financial services, the company has continually prioritized the need of the hour in the country to design offerings made for today, and geared for tomorrow.

On the healthcare front, Dhani provides its customers healthcare access over instant video calls with doctors. Dhani Doctor is supplemented with Dhani Medicines - which is enabled to provide customers with quality yet affordable medicines delivered at their door step.

Should you buy the stock of Dhani Services?

We do not recommend buying into any such stocks. Goodreturns.in has largely been recommending companies that have a long standing track record of paying dividends. Apart from this we believe that the stock markets are exceedingly volatile right now, with no stability whatsoever. Buying stocks at this time is fraught with risks.

Investors are advised to stay on the sidelines, till some clarity emerges. There are geo-political risks right now, as well as worries of tightening by the US Federal Reserve. Against this backdrop we are asking investors to stay on the sidelines.