Overall the stock fell 34 percent this week despite company's clarification on default in debt repayment
Jain Irrigation Systems shares crashed 26 percent intraday to hit 52-week low of Rs 20.2 on June 19 after India Ratings cut its long term issuer rating.
The stock was quoting at Rs 21.10, down Rs 6.3, or 22.99 percent on the BSE at 1314 hours IST.
India Ratings and Research said it has downgraded Jain Irrigation Systems' Long-Term Issuer Rating to BBB from A-; while placing it on Rating Watch Negative (RWN).
The downgrade reflects deterioration in the liquidity profile of Jain Irrigation on account of a delay in the realisation of its receivables from its micro-irrigation systems (MIS) segment, the rating agency said.
The RWN reflects the risk of delay in the company’s deleveraging plans or a further increase in its working capital requirement, resulting in further worsening of its liquidity position, it added.
Overall the stock fell 34 percent this week despite the company's clarification on default in debt repayment.
"Company has not defaulted on any of its debt obligations. Company is growth-oriented, profit making, dividend paying entity," Jain Irrigation had said on June 13.It has debt:equity ratio of 1:1.1 and networth of Rs 4,561 crore (including CCD), it added.The Great Diwali Discount!
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