Coffee Day Enterprises Ltd (CDEL), which owns Cafe Coffee Day saw its share price plunge to a new historic low of Rs 80.85. Since listing one has not seen the share price fall so low.
The death of founder V G Siddhartha has seen a complete price destruction from levels of as high as Rs 300.
Analysts believe that CDEL shares would continue to be under pressure, until there is a clear road-map of plans ahead. The quarterly results which were to be announced were also postponed.
One of the clear worries at the company would be mounting debt. It would be important for the board of Directors to clearly indicate their plans on the settlement of debt at the company.
The shares of the company have hit the lower end of the circuit filter, ever since the death of V G Siddhatha.
The next big trigger for the stock would be a buyout, just in case there is a suitor. It is unlikely that we would see too much of buying interest at the moment until then. Also, it is impossible to bet on the bottom of the stock. However, at some stage buying interest may emerge, thanks to the solid brand equity that the company enjoys.
The next board meet of the company would be crucial from an investor stand-point.