Overleverage, pledged promoter equity is behind the sell-off in Amtek Auto: Parag Thakkar, HDFC Securities

In a chat with ET Now, Parag Thakkar, HDFC Securities shares his view on Amtek Auto.

ET Now: Amtek Auto, what does this recurring pattern of selloff indicate to you?

Parag Thakkar: So basically, one of the things is that every company which is very highly leveraged and where promoters shares are pledged, makes for a killing combination, actually. And it, has destructed so much value in the market time and again. So, investors need to learn from this that just be away from companies that are overleveraged and where promoters have pledged their shares. Significantly, high promoters' leverage also creates huge issues. When the stock price goes down, everybody just wants to sell.