Inox Wind hits 52-week low as CRISIL cuts rating outlook

Thus far in 2016, the stock has fallen 44% as compared to 7% rise in the Nifty 50 index.

Inox Wind has fallen to its 52-week low of Rs 200 on the National Stock Exchange (NSE) after rating agency CRISIL on Monday, has revised its outlook on the long-term bank facilities of the company to 'Negative' from 'Stable' and reaffirmed the 'CRISIL AA-' rating.

In past two trading sessions, the stock dipped 8% from Rs 219 on August 5. The trading volumes on the counter more than doubled with a combined 431,902 shares changed hands on the NSE and BSE till 12:51 pm.

The 'CRISIL A1+' rating on the company's short-term bank loan facilities and commercial paper programme has also been reaffirmed.

“‘The outlook revision reflects CRISIL's belief that Inox Wind's credit risk profile may be constrained over the medium term because of its large receivables,” the rating agency said in a statement.

Contrary to CRISIL's earlier expectation of a decline in the receivables because of increase in equipment supply orders and alignment of manufacturing capacity of various components, the receivables increased to 148 days as on March 31, 2016, from 140 days as on March 31, 2015, it added. LINK

Thus far in 2016, the stock is underperforming the market by falling 44% from Rs 359 on December 31, 2015, as compared to 7% rise in the Nifty 50 index.