One need to be careful of following companies which can be described as companies having the highest amount of debt on the backs which means that returns for share holders may take substantial time as in high interest scenario; bulk of their profit goes towards servicing of the debt. Now you can understand that why Gitanjali Gems Stock Crashed in a short period of time.
Thus before entering in a stock; you must check the debt liability and just remember that Banks and financial services and public sector companies have been excluded from this list while chalking out the most debt ridden companies. A word of caution is that a high debt does not mean that it can not be a good company and it only means that they have important liabilities to serve before they can look after the interest of the shareholders.
