For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

PC Jeweller Shares Gain 31% In 3 Days

|

PC Jeweller was among the top gainers on BSE in Monday's trading session. It is the third consecutive session of a rally for the stock that rose as much as 31 percent in this period.

On Monday, it rose 7.5 percent to an intraday high of Rs 28.60 apiece. Bloomberg data showed that the trading volume was three times its 20-day average.

PC Jeweller Shares Gain 31% In 3 Days
PC Jeweller: Quotes, News
BSE 22.85BSE Quote0.3 (-1.31%)
NSE 22.85NSE Quote0.3 (-1.31%)
 

The rally comes after the stock touched its all-time low of Rs 20.60 last week on global analytical company, CRISIL's rating downgrade on the stock. CRISIL downgraded the long-term and short-term ratings to the bank loan facilities of the company to 'CRISIL D'.

The downgrade factors in the instances of devolvement of Letter of Credits (LC) and overutilisation in working capital limits for more than 30 days.

The liquidity profile of the group has deteriorated in the past few months on account of cash flow mismatches. Overutilisation in working capital limits, large working capital requirement and the risk of unfavourable regulatory changes were the concerns for a rating downgrade.

Further, CARE Ratings agency downgraded the ratings of the fixed deposit programme of the company to CARE D (FD), citing stressed liquidity position and deterioration in the financial flexibility of the company which has led to instances of devolvement of Letter of Credits (LC) and overutilisation in its working capital limits for more than 30 days.

The company provided clarification on both the rating downgrades in announcements at the stock exchanges. It said that the "Indian jewellery demand during Q2 at 101.6 tonnes was almost a third lower Y-0-Y due to weaker consumer sentiments and there was a decline of nearly 51% in Indian bullion imports on Q-o-Q basis."

"The CARE Rating is specifically for the Company's Fixed Deposit Programme which stands suspended from June, 2019 onwards and no fresh deposits has been accepted by the Company thereafter. Further, to confirm that till date the Company has never defaulted in any of its deposits repayment obligations," it said in a separate filing with regard to CARE rating downgrade.

Read more about: pc jeweller pc jewellers
Story first published: Monday, December 16, 2019, 12:02 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more