PC Jeweller stock falls on credit downgrade by CRISIL
New Delhi: Shares of PC Jeweller fell over 5 per cent in early trade on Tuesday, a day after CRISIL downgraded the company's long-term and short-term ratings to bank loan facilities.
On the BSE, the scrip was trading at its 52-week low of Rs 23.5, down 5.05 per cent compared with the previous close.
Similarly, on the NSE, the stock slumped 5.24 per cent to Rs 23.5.
"CRISIL Ltd has downgraded its long-term and short-term ratings to the bank loan facilities of the Company to CRISIL D," PC Jeweller said in a regulatory filing on Monday.
It further said "the ratings reflect instances of LC (letter of credits) devolvement and overutilization in working capital limits, large working capital requirement and the risk of unfavourable regulatory changes. These weaknesses are partially offset by PCJ group's strong market position in manufacturing and retailing gold and diamond jewellery and the above-average capital structure."
However, the company said Indian jewellery demand at 101.6 tonne during second quarter, was almost a third lower year-on-year due to weaker consumer sentiments. Besides, there was a decline of nearly 51 per cent in Indian bullion imports on quarterly basis.