Gensol Engineering Down 10% in Early Morning Trade

Shares of Gensol Engineering fell by 10% in the early morning trade on March 6. The downfall comes after credit ratings agency CARE Ratings downgraded the company’s long-term and short-term bank facilities due to delay on its part to service its term loan obligations. ICRA has also downgraded the credit rating for Gensol Engineering.

In the past three sessions, the stock has dipped by 40%. Following the downgrade in its credit rating the engineering major has issued a clarification .

“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.

It added, “We would like to reinforce that the company has reported strong growth in key financial parameters across the board.”

Notably, Gensol stock reported a 10% lower circuit to clock a 52-week low of ₹335.35 on BSE in the current trading session. Market cap slipped to ₹1,274.41 crore. Close to 8569 shares changed hands totalling to a turnover of ₹28.73 lakh on BSE.

On the technical front, the relative strength index (RSI) of the stock stands at 17. The shares were trading lower than 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day moving averages.

Shares of Gensol Engineering have slumped by 66.74% in the past year. The stock has a one-year beta of 1, indicating average volatility during the period.