The Rise of Gensol and the EV Narrative
Let’s talk about a very recent and revealing case — Gensol Engineering. Many of you must already be familiar with this name. This is the same group that runs Blue Smart taxis, and Gensol is the company that buys the EV cabs and leases them to Blue Smart. On paper, it looked like a great business loop — all lease rentals flowing into Gensol, a high-growth electric mobility narrative, and the promise of disrupting players like Uber. That story quickly caught investor attention and the stock rocketed from around ₹400 to ₹1300 in no time.
The Sudden Fall and Promoter Actions
However, things took a dark turn. News emerged that the company was in trouble. There were signs of manipulation — flared-up shareholding patterns, promoters selling shares, and unexpected financial pressures. One day, the promoter came on television, calmly assuring that things were under control and he was arranging funds. That day, many investors bought in, trusting his words. The stock was still somewhere around ₹500. But by the end of that same day, reports emerged that the promoter had sold even more shares, triggering panic, and the stock crashed to ₹200.
The Cost of Blind Trust
From ₹1300 to ₹200 — that’s nearly 85% of the stock’s value gone. No one had imagined this could happen. Investors who trusted the company’s communication or media commentary saw their capital evaporate. The hard truth of the markets is that trust can be broken very easily. Just because someone is on TV or publishing an annual report or sharing future projections doesn’t mean their words are gospel. Everyone has their own interest — and often that interest is not aligned with yours.
Price is the Only Truth
In such situations, the only truth you can rely on is the price. Price reflects collective sentiment — the wisdom of millions of participants. It’s like a divine signal. If the stock drops from ₹1300 to ₹700 and then keeps sliding, the price is trying to tell you something. Even if the narrative sounds good, if the price continues to decline and makes new lows, it’s usually a red flag. There are always multiple chances to exit such a stock — and each of those chances is clearer if you follow the price, not the story.
The Danger of Ego in Investing
It’s important to understand that your belief or thesis about a stock doesn’t matter as much as what the market is doing. If a stock keeps falling, your logic that it is worth ₹1000 or that it’s undervalued doesn’t change the reality. The market is a collection of incredibly intelligent players, and if they are not willing to pay even ₹300 for a stock, then perhaps they know something you don’t.
How to Protect Your Capital
Ego is your biggest enemy in such situations — the belief that you are smarter than the market can be extremely damaging. If you’re holding a stock that the market is clearly rejecting, it’s time to listen. Many of the top market participants — institutions, funds, seasoned traders — would be happily buying if the opportunity was genuine. So when they don’t, and you keep holding on, it’s time to ask whether you’re truly seeing clearly.
Building a Better Exit System
Following price-based systems and momentum strategies can protect you in such situations. If you know how to exit a falling stock early, you’re already ahead of the curve. Over time, if you build a strategy that respects price trends over emotional attachment or narrative-driven investing, your entire investing approach will evolve. You’ll exit weak stocks faster, allocate better, and make far more rational decisions. Ultimately, this discipline will reflect in your portfolio and your long-term success.
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