From investor’s paradise to graveyard: the tragic tale of Sintex
Publication date: 4 July 2023
Issue publication date: 2 January 2024
Abstract
Research methodology
The case delves into the significant factors contributing to the steep decline of Sintex shares, examining both external and internal factors. Internally, the primary drivers were the expansion plan, the demerger decision, financial mismanagement and the delayed and inadequate integration of Information Technology (IT) into the business.
Case overview/synopsis
Sintex, a prominent private sector company listed in the Indian stock markets, operated in the textile and plastics sectors. However, in 2017, Sintex underwent a demerger into two separate entities: Sintex Industries Limited (SIL) and Sintex Plastics Technology Limited (SPTL). While SIL focused on textiles, SPTL dealt with plastics. However, soon after the demerger, the share prices of both companies began plummeting, leading to significant losses for investors. This case investigates the reasons behind this decline through a step-by-step analysis.
Complexity academic level
This case is suitable for postgraduate students pursuing an MBA, MMS and executive programs such as PGDBM and PGDM, with a specialization in business strategy. It is also beneficial for participants in management development programs (MDPs) designed for higher level executives. Additionally, the case can serve as training material for executives undergoing strategic role training within an organization. It is recommended to teach the case toward the end of the course, where the instructor can provide a summary of the previous classes’ teachings.
Subject Code
CCS7: Management Science
Keywords
Acknowledgements
The author would like to acknowledge that no financial support was sought for this research. However, he is grateful for the support and resources provided by IIM Sirmaur and its MBA and PhD students, as they played a crucial role in the successful completion of this case study.
Declaration: The author declare that there is no potential conflict of interest in the research.
Disclaimer. This case is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.
Citation
Srivastava, S.K. (2024), "From investor’s paradise to graveyard: the tragic tale of Sintex", , Vol. 20 No. 1. https://doi.org/10.1108/TCJ-05-2022-0088
Publisher
:Emerald Publishing Limited
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