Gensol Engineering shares fell 5% to a new 52-week low of Rs 289.90, down from Rs 305.15 on the BSE. Consequently, the company’s market capitalization dropped to Rs 1,101.64 crore.
Gensol Engineering Shares Hit 52-Week Low Amidst Decline
Gensol Engineering shares fell 5% to a new 52-week low of Rs 289.90, down from Rs 305.15 on the BSE. This decline marks the 11th consecutive session of falling prices, raising concerns among investors. The company’s market capitalization decreased to Rs 1,101.64 crore, with 0.21 lakh shares traded, resulting in a turnover of Rs 62.72 lakh. Despite the drop, the company announced a Rs 29 crore infusion from its promoters by converting 4,43,934 warrants into equity at Rs 871 per share. This move aims to strengthen the company’s financial position amid ongoing market challenges.
Analysts Warn of Further Decline as Ratings Downgraded
A.R. Ramachandran, a SEBI-registered independent analyst, stated that Gensol Engineering is oversold and bearish on daily charts, facing strong resistance at Rs 322. He warned that a daily close below the support level of Rs 273 could lead to a target of Rs 215. Investors should closely monitor these levels as they may indicate further price movements.
In addition to the stock’s decline, credit ratings agency CARE Ratings downgraded the company’s long-term and short-term bank facilities due to delays in servicing term loan obligations. They downgraded long-term facilities worth Rs 639.70 crore to CARE D from CARE BB+. They also lowered ratings for Rs 76.30 crore in facilities. ICRA similarly downgraded its credit rating for Gensol Engineering last week, reflecting the company’s current financial struggles.
Gensol Engineering is part of the Gensol group, which specializes in engineering, procurement, and construction services for solar power plants. As the renewable energy sector continues to grow, Gensol Engineering’s performance will be crucial in determining its future trajectory. Investors will be watching closely to see how the company navigates these challenges and whether it can regain investor confidence in the coming months.
