Shares of Gensol Engineering Ltd slipped another 10% in early deals today after credit ratings agency CARE Ratings downgraded the company’s long-term and short-term bank facilities due to delays in servicing its term loan obligations. ICRA too has downgraded its credit rating for Gensol Engineering.
The stock has fallen 40% in the last three sessions. The company has issued a clarification after the credit rating downgrade.
"The rating downgrade happened due to short-term liquidity mismatch which is improving by way of customer payments. That said, we understand the concerns these downgrades have raised and are committed to addressing them responsibly to all our stakeholders. Further, we deny any involvement in falsification claims and would be setting up a committee to comprehensively review the matter. This underscores company’s commitment to accountability, transparency and sustainable business practices," said the firm.
"We would like to reinforce that the company has reported strong growth in key financial parameters across the board," it added.
1. Order book of more than Rs 7000 crore imparting significant revenue visibility
2. Total Revenue has grown by 42% to Rs 1,056 Cr. in 9M FY25.
3. EBITDA has grown by 89% to Rs 246 Cr. in 9M FY25
4. PAT has grown by 34% to Rs 67 Cr. in 9M FY25
Gensol stock hit the lower circuit of 10% to a fresh 52-week low of Rs 335.35 on BSE in the current session. Market cap of the firm slipped to Rs 1,274.41 crore. Total 8569 shares changed hands amounting to a turnover of Rs 28.73 lakh on BSE.
In terms of technicals, the relative strength index (RSI) of the stock stands at 17, signaling it is oversold on charts. Gensol Engineering shares were trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Gensol Engineering stock has lost 66.74% in one year and fallen 64% in six months. The stock has a one-year beta of 1, indicating average volatility during the period.
Gensol Engineering is a part of the Gensol group of companies, which offers engineering, procurement, and construction (EPC) services for the development of solar power plants.