Yes, the recent developments in Zee Entertainment, DHFL,etc,have given reason to view promoter pledging and high-leveraged balance sheets,with justifiable suspicion.So to that extent, Hiteshbhai’s comments are pertinent.
But @Homemaker has given cogent reasons for sticking to Sterlite Tech even after taking these factors into account. Ultimately,a question of courage of conviction in a stock.
And @phreakv6 has suggested a look at Birla Cable. I viewed it’s financials on Screener.in , and these stats do bear out what he says, so we can examine those financials also. One stat about Market cap & Debt gives an indication.
Sterlite Tech Rs 10,000 crores. Debt Rs 1,178 crores
Birla Cable Rs 521 crores. Debt Rs 44 crores
So,there is apparently a larger runway for growth for Birla Cable,compared to Sterlite Tech.
But of course, other parameters also need to be taken into account,as suggested by @ramanhp. Management quality and corporate governance are critical for Portfolio selection,and Birla Cable has a cleaner slate,so far.