Shares of Rushil Décor (RDL) hit the 10 per cent lower circuit for the second straight day on the BSE on Wednesday after concerns over weak earnings hit investors' sentiment. The stock, which was locked at Rs 344 apiece, was also at its 52-week low, having tanked 28 per cent in the past two trading days.
Till 09:55 am, a combined 2,452 shares had changed hands and there were pending sell orders for 1,45,183 shares on the NSE and BSE.
Over the past month, the stock has shed 50 per cent of its value from Rs 687 after the company reported 58 per cent decline in net profit at Rs 3.38 crore in March quarter. It had posted profit of Rs 4.28 crore during the same quarter last fiscal. Operational revenues were down 1.8 per cent at Rs 86.54 crore over the previous year quarter.
Rating agency India Ratings and Research (Ind-Ra), on May 17, had downgraded RDL’s long-term issuer rating to ‘IND BBB’ from ‘IND A-’ with a negative outlook.
The downgrade reflected RDL’s weaker-than-expected operating performance and overall credit metrics on account of a decline in the selling prices of medium density fibreboard (MDF), overcapacities in MDF and consequent pressure on the profitability, and large debt-funded capex.
"All of this will lead to the company’s credit profile remaining weak over the next three years," the agency said.
According to the shareholding pattern data as of March 2019, foreign portfolio investors held 12 per cent stake in RDL. Among others, IL&FS Securities Services (3.65 per cent), Shriram Insight Share Broker (3.21 per cent) and Nomura Singapore (3.17 per cent) held more than 3 per cent stake in the company.