Coffee Day Enterprises hits the roof on bargain hunting

Shares of Coffee Day Enterprises were locked in 5% upper circuit at Rs 66.05 on bargain hunting after a recent slide.

Meanwhile, the S&P BSE Sensex was up 245 points or 0.66% to 37595.53.

On the BSE, 18.50 lakh shares were traded in the counter so far compared with average daily volumes of 8817 shares in the past two weeks. The stock hit a high of Rs 66.05 and a low of Rs 66.05 so far during the day.

The stock hit a 52-week high of Rs 325 on 21 September 2018. The stock hit a 52-week low of Rs 62.95 on 16 August 2019.

Shares of Coffee Day Enterprises (CCD) has slumped 68.51% in the past sixteen trading sessions to settle at Rs 62.95 on Friday, 16 August 2019, from its close of Rs 199.90 on 23 July 2019. The stock incurred heavy losses in the aftermath of the unfortunate demise of V.G. Siddhartha, promoter and former CMD, on 29 July 2019.

CCD announced that as on 31 July 2019, debt of Coffee Day Group, excluding Sical and Magnasoft, stood at Rs 3,472 crore while the total debt of Coffee Day Group was Rs 4,970 crore.

The company has announced the divestment of Global Village Tech Park (Global Village) held by its subsidiary Tanglin Developments for an aggregate consideration in the range of Rs 2,600 - 3,000 crore.

On receipt of the consideration for the sale of Global Village after payment of required statutory payments, the debt position of Coffee Day Group will reduce around by Rs 2,400 crore.

The debt position of Coffee Day Group (excluding Sical and Magnasoft) post repayment of debt out of proceeds from sale of Global Village is expected to be around Rs 1,000 crore in the next 45 days. The company expected to have a comfortable position to service the reduced debt obligations.

It further added that Sical has been working on divestment of certain assets. The proceeds from the divestment is expected to significantly reduce the debt in Sical.

CCD said it is confident that the ongoing divestments will significantly reduce the debt position of Coffee Day Group. The financial position and asset base of the Coffee Day Group will be comfortable to service the debt obligations of the entire group in full.

The company is yet to declare its Q1 June 2019 results. On a consolidated basis, CCD reported a decrease in the net profit of 74.3% to Rs 8.92 crore on a 17% rise in the net sales to Rs 1322.20 crore in Q4 March 2019 over Q4 March 2018.

Coffee Day Group is the parent company which houses CafCoffee Day that pioneered the coffee culture in the chained cafsegment in India.

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