Story of a TurnaroundIndusInd Bank Ltd.NSE:INDUSINDBKDiki_Exactly as Peter Lynch's framework suggests, the entire universe of stocks be it any economy round the globe, can indeed be broadly classified into Six major categories: 1. Slow Growers: large, mature companies with modest but steady growth, sometimes flat even and often paying dividends..blue blood/chips.. whatever.. 2. Fast growers : smaller, aggressive firms expanding rapidly at 20-25%+ and beyond (both in earnings and revenue) annually, in these scrips, solid momentum is also seen in the stock prices, erratic volumes, wild bid ask spreads, these are the ones that go on to become the multi baggers and equally many become "multi-beggers" also.. 3. Stalwarts : reliable mid to large-cap growers at 10-15% rates, generally cash rich (though not always the case), offering stability, and low risk, growth doesn't explode but neither stops completely too, dividend is not a promise, one can see lot's of mergers and acquisitions, hostile takeovers, leveraged buyouts circling around when companies reach this level.. 4. Cyclicals: companies tied to economic cycles, with volatile earnings like autos, airlines, energy, minerals, metal, defence too.. timing plays a crucial role for entry and exit in this sector along with deep understanding of the nature of the business.. 5. Asset plays: undervalued due to hidden assets like real estate or cash or depreciated goodwill that sometimes if not often goes overlooked, skill of rummaging through balance sheets and annual reports is critical here as 20 cr of items listed as assets might fetch no more than 2 cr in a flash sell.. 6. Turnarounds: battered firms on final breaths, recovering from near-collapse, bankruptcy crises, or losses, with potential for big rebounds if they survive. Now to talk about this extreme-beta scrip, this one fell off a 1498 mtr cliff without a parachute (I was massively long on margin that day..) and is currently afloat at sea-levels of 700-750, not yet drowned, but not quite at the shore either.. It probably has seen it all, having battered by the microfinance disaster, internal scandals, accounting irregularities, forex losses, executives shakeups, insider trading, governance issues, and what not..name one bad thing that might happen to a bank, chances are it might have occurred here also. But in spite of all the extreme natured adversities, the company has not gone bankrupt, yet..has 15% in capital ratio and around 5 lakh crore assets to show.. and now with new management in the foray, it shows promise from here on, the only good so far.. So, in short, it basically has, mostly all of the ingredients generally required for a Turnaround to happen. Now, having said that, one might still have to wait a long enough time to see what happens of it..but when, and most importantly if 'that' happens, my bets lie on it becoming atleast a 3-bagger couple of years from now. Downside seems limited but do your own DD, see what you might find. Sometimes, the largest of wrecks conceal within, the biggest of treasures..