High debt to changing media market: How Eros International lost its way

Stock price of Eros International Media on Thursday crashed 20 per cent on the BSE

Stock price of one of the country’s best-known moviemakers Eros International Media (Eros) on Thursday crashed 20 per cent on the BSE over debt repayment concerns. The trigger was a ratings downgrade by CARE on Wednesday, citing a slowdown in collection from debtors, which was leading to cash flow issues.

While Eros wasted no time in issuing a statement on the same day, saying the downgrade to ‘default’ from ‘BBB’ was due to a delay in paying off loans for April and May only, its stock price has fallen 39 per cent in 2019 so far (year-to-date) even as the Sensex