Here's How PVR Shares Might Perform As It Gears Up For Merger With INOX

While new age tech companies like Paytm and Nykaa have come under bear attack, is a popular stock like PVR Ltd also under same threat?

What are the different ways in which you think a stock can underperform?

Well, if you ask me, there are 3 ways this can happen. A stock can underperform either because of exorbitant valuations or consistent losses or even high debt for that matter.

A stock with a cross against its name on any of these parameters, is a dangerous stock to own. It can underperform, perhaps in a big way, and put your overall returns at risk.

Now, what about a stock with a cross against its name on all these three parameters? In other words, a stock that is trading at exorbitant valuations, is loss making and also has high leverage.