Ess Dee Aluminium slips as CARE downgrades debt rating

The stock dipped 16% to Rs 216 on the BSE.

Ess Dee Aluminium has dipped 16% to Rs 216 on the BSE after rating agency CARE downgraded the company’s debt.

“CARE has revised rating assigned to bank facilities of Ess Dee Aluminium. The ratings for fund-based long term bank facilities worth Rs 180 crore and long term non-convertible debentures of Rs 30 crore to D from BBB- each,” the rating agency said in a release dated January 6, 2016.

It also revised rating for non-fund-based short term bank facilities worth Rs 335 crore to D from A3.

CARE said the revision in the ratings of Ess Dee Aluminium Limited takes in to account the ongoing delays in debt servicing owing to the strained liquidity position. CLICK HERE TO READ FULL DETAILS.

Since November 9, 2015 the stock declined 33% from Rs 323 after the company reported consolidated net loss of Rs 15.44 crore for the quarter ended September 2015. It had profit of Rs 14.10 crore in the same quarter previous year. Net sales declined by 40% to Rs 133 crore over the previous year quarter. The S&P BSE Sensex was down 4.5% during the same period.

At 01:33 p.m. the stock was down 14% at Rs 220 on the BSE. A combined 1.23 million shares changed hands on the counter on the BSE and NSE so far.

The company is engaged in manufacturing of aluminium foil based high-end packaging solutions for pharmaceuticals, FMCG and confectionery industry.