5 Multibagger Stocks That Crashed and Turned into Wealth Destroyers
Explore the stories of five multibagger stocks that experienced significant declines, turning into wealth destroyers. From EKI Energy Services to Sanghvi Movers, discover what went wrong.
Multibagger StocksFallen AngelsStock MarketInvestmentFinancial PerformanceReal EstateMay 26, 2025
However, not all multibaggers maintain their upward trajectory. Some stocks that once delivered extraordinary returns have since crashed, turning into wealth destroyers. These fallen angels are stocks that were once high-performing or highly rated but have experienced a significant decline in price or reputation due to financial troubles, poor performance, or adverse market conditions. Let's explore five such stocks:
1. EKI Energy Services
EKI Energy is an Indian company specialising in climate change advisory and carbon credit trading. Founded in 2008 and based in Indore, it has become a global player in carbon offset solutions, helping businesses reduce their carbon footprint through consultancy services and carbon credit mechanisms.
The company’s stock was trading at Rs. 40.51 in April of 2021, and by January of 2022, the stock reached a high of Rs. 3,114, delivering a multibagger return of 7,587 percent. However, since then, the stock has declined by 96.49 percent from its high of Rs. 3,114 to Rs. 109 levels, turning the stock into a fallen angel.
2. Jai Corp
Jai Corp is a diversified Indian company with interests spanning steel, plastics processing, infrastructure, real estate, and venture capital. The company’s stock was trading at Rs. 71.05 in April of 2020, and by January of 2024, the stock reached a high of Rs. 438, delivering a multibagger return of 516 percent. However, since then, the stock has declined by 75.34 percent from its high of Rs. 438 to Rs. 108 levels, turning the stock into a fallen angel.
3. Bharat Global Developers
Bharat Global Developers Ltd is positioned as a diversified player focusing on multiple forward-looking sectors. The company operates in sustainable energy, advanced engineering, aerospace technologies, and modern agriculture.
The company’s stock was trading at Rs. 16.15 in March of 2021, and by November of 2024, the stock reached a high of Rs. 1,702, delivering a multibagger return of 10,438 percent. However, since then, the stock has declined by 83.54 percent from its high of Rs. 1,702 to Rs. 280 levels, turning the stock into a fallen angel.
4. Mishtann Foods
Mishtann Foods is a Gujarat-based company primarily engaged in the production, processing, and marketing of basmati rice. Established in 1981, it has built a reputation in India and overseas markets for premium rice brands.
The company’s stock was trading at Rs. 2.46 in April of 2020, and by February of 2024, the stock reached a high of Rs. 23.01, delivering a multibagger return of 835 percent. However, since then, the stock has declined by 77.92 percent from its high of Rs. 23.01 to Rs. 5.08 levels, turning the stock into a fallen angel.
5. Sanghvi Movers
Sanghvi Movers is India’s largest and one of Asia’s leading crane rental companies. Founded in 1989 and based in Pune, Sanghvi provides heavy-lift services to industries like power, wind energy, steel, cement, and refinery projects.
The company’s stock was trading at Rs. 28.25 in April of 2020, and by March of 2024, the stock reached a high of Rs. 676, delivering a multibagger return of 2,293 percent. However, since then, the stock has declined by 55.67 percent from its high of Rs. 676 to Rs. 301 levels, turning the stock into a fallen angel.
Fallen angel stocks can turn into multibaggers again, but it depends on a successful turnaround in the company’s fundamentals. These are stocks that were once high performers but fell sharply due to financial missteps, poor management, or adverse market conditions. However, if the company is able to restructure its business, reduce debt, adapt to market changes, or bring in strong new leadership, it can regain investor confidence and deliver substantial returns.
Frequently Asked Questions
What are multibagger stocks?
Multibagger stocks are shares that multiply the value of an investor’s initial investment by delivering returns several times over the original purchase price. For example, a stock that doubles, triples, or grows tenfold is considered a multibagger.
What are fallen angel stocks?
Fallen angel stocks are shares that were once high-performing or highly rated but have experienced a significant decline in price or reputation due to financial troubles, poor performance, or adverse market conditions.
Can fallen angel stocks recover?
Yes, fallen angel stocks can recover and turn into multibaggers again if the company successfully restructures its business, reduces debt, adapts to market changes, or brings in strong new leadership.
What caused the decline in these multibagger stocks?
The decline in these multibagger stocks can be attributed to various factors such as financial missteps, poor management, adverse market conditions, and other economic factors.
What should investors consider before investing in fallen angel stocks?
Investors should carefully evaluate the company’s fundamentals, financial health, management, and market conditions before investing in fallen angel stocks. It's also advisable to consult with an investment advisor.
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