Shares of Coffee Day Enterprises rallied 20 per cent, hitting its upper circuit limit for the day, bucking the weak sentiments prevailing in the broader markets as the National Company Law Appellate Tribunal (NCLAT) set aside insolvency proceedings against the company.
In a major relief to the operator of the Café Coffee Day chain, the case, filed by IDBI Trusteeship Services over an alleged Rs 228 crore default, was set aside by a two-member bench of NCLAT’s Chennai panel. The Chennai bench of the NCLAT overturned the National Company Law Tribunal’s (NCLT) August 2024 order, which admitted an insolvency plea filed by IDBI Trusteeship Services.
Following the announcement, shares of Coffee Day Enterprises surged 20 per cent, locked in the upper circuit limit, to Rs 25.65 on Monday, with a total market capitalization over Rs 541.86 crore. The scrip had settled at Rs 21.38, at its 52-week low, in the previous trading session on Friday.
The stock has before scripting a recovery following the NCLAT orders, the stock had cracked more than 70 per cent from its 52-week high at Rs 74.54, hit in April 2024. The stock is down 55 per cent in the last one year, while it has tumbled one-third in six months period. The stock is down 95 per cent from its all time high at Rs 374.60 hit in January 2018.
For the quarter ended on December 31, 2024, Coffee Day Enterprises reported widening of its net losses at Rs 10.28 crore with a marginal increase in the total revenue of Rs 280.41 crore for the quarter. Its operating profit came in at 36 crore, with an operating profit margin of 13 per cent for the recent quarter.
Coffee Day Enterprises operates various businesses, including coffee, logistics, financial services, and hospitality. The company owns and operates café chain outlets under the Café Coffee Day brand, as well as resorts and hotels. The company is also engaged in the purchase and sale of coffee beans.