PC Jeweller Shares Sink 9% After Care Ratings Downgrades Its FD To CARE D (FD)

Shares of PC Jeweller on December 11 in intra-day trade hit a new 52-week low of Rs. 20.75 on the NSE. The shares plunged as much as 9% in early trade on CARE Ratings downgrade of the company's medium term fixed deposit instrument to CARE D (FD).

The rating downgrade of the FD instrument by the rating agency comes amid the company's questionable liquidity position as well as worsening financial flexibility which at times has resulted in the devolvement of Letter of Credits (LC) and enhanced usage of its working capital limits beyond the 30 day period.

Also, the agency has considered all such factors that include declining market cap of the firm, depleting bank balance, cash together with moderate financial standing of the jewellery maker in FY19 and H1FY20.

Notably, the company's FD programme stands withdrawn from June 2019 and no fresh deposits are being entertained by the company.

Earlier on Monday, Crisil downgraded the short term and long term ratings to the bank loan facilities of the company to CRISIL D.

Last, the stock of PC Jeweller quoted at Rs. 21.05, down Rs. -1.75 or 7.68%.

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