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Bajaj Electricals slides after credit rating downgrade

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Capital Market
Last Updated : Jul 24 2019 | 12:50 PM IST

Bajaj Electricals fell 4.24% to Rs 407.30 at 11:33 IST on BSE after the company received a credit rating downgrade from ICRA.

The announcement was made before market hours today, 24 July 2019.

Meanwhile, S&P BSE Sensex was down 258.05 points or 0.68% at 37,724.69.

On BSE, 7,713 shares were traded in Bajaj Electricals counter, compared to a 2-week average of 9,662 shares. The share price hit an intraday high of Rs 426.15 and an intraday low of Rs 404.20. It hit a 52-week high of Rs 658.70 on 25 July 2018 and a 52-week low of Rs 379 on 19 February 2019.

Shares of Bajaj Electricals plunged 14.96% in seven trading sessions to its current market price of Rs 407.30, from a recent closing high of Rs 479 on 15 July 2019.

The company has announced that ICRA has downgraded its long-term line of credit rating from [ICRA]A+ to [ICRA]A. Ratings on short-term line of credit and commercial paper were downgraded from [ICRA]A1+ to [ICRA]A1. Ratings on non-convertible debentures (NCDs) were downgraded from [ICRA]A+ to [ICRA]A.

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The rating agency considered the increasing leveraging level and the subsequent weakening of debt coverage metrics of the company as the primary reasons for its downgrade of the credit rating of the company.

Bajaj Electricals' net profit fell 41.2% to Rs 28.54 crore on a 10.2% increase in net sales to Rs 1,759.38 crore in Q4 March 2019 over Q4 March 2018.

Bajaj Electricals provides solutions for lighting and luminaires, EPC, IBMS, power transmission and distribution, illumination and consumer durables.

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First Published: Jul 24 2019 | 12:12 PM IST

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