Meanwhile, the S&P BSE Sensex was up 149.71 points or 0.76% at 19,825.77.
On BSE, 700 shares were traded in the counter as against average daily volume of 82,033 shares in the past one quarter.
The stock opened with a downward gap, declining by the maximum 5% daily circuit and remained locked at the 5% level at Rs 141.80 so far during the day, which is also its 52-week low for the counter. The stock had hit a record high of Rs 649.50 on 23 April 2013.
The stock had underperformed the market over the past one month till 11 July 2013, sliding 72.71% compared with the Sensex's 2.78% rise. The scrip had also underperformed the market in past one quarter, declining 74.96% as against Sensex's 6.12% gain.
The small-cap company has equity capital of Rs 92.06 crore. Face value per share is Rs 10.
Shares of Gitanjali Gems (GGL) have slumped a whopping 74.05% in 18 trading sessions from a recent high of Rs 546.50 on 18 June 2013.
Credit rating agency CARE on 5 July 2013, revised the ratings assigned to the bank facilities/instruments of GGL and its subsidiaries/step-down subsidiaries and placed them on credit watch. The revision in the ratings takes into account stressed liquidity position of GGL as evidenced by full utilisation of the existing working capital limits which along with the recent RBI guidelines on gold import for domestic purpose would further put pressure on its liquidity position, CARE said. CARE further added that it has also taken into account the significant erosion in share price and market capitalisation of the company in the last two weeks of June 2013 which in CARE's opinion would have weakening effect on GGL's financial flexibility and liquidity. The rating has been placed on credit watch due to lack of adequate information in-order to take a final view, the rating agency added.
CARE said that its ratings on GGL continue to derive strength from GGL's experienced promoters and professional management, its long track record in Gems and Jewellery (G&J) business, its integrated operations across the entire G&J value chain, its extensive portfolio of established brands both in the domestic as well as international markets as well as its strong domestic and international retail presence. The ratings also take cognizance of the financial performance of the group during FY 2012, the first half of FY 2013 and the improvement in the financial and operational performance of its group company, Samuels Jewelers Inc., USA.
CARE further said that the ratings on GGL are constrained by the group's increasing debt levels witnessed in FY 2012 and the first half of FY 2013 and the working capital intensity of the business, its long working capital cycle as well as the challenging macroeconomic environment in key gems and jewellery (G&J) markets.
GGL's ability to maintain its good revenue growth together with an improvement in profitability would continue to remain the key rating sensitivities, CARE said. Further, a concerted effort of the group towards efficiently managing its collection period and inventory levels thereby reducing its dependence on its working capital borrowings would also enhance the financial profile of the group, CARE said.
Gitanjali Gems' consolidated net profit rose 15.5% to Rs 118.88 crore on 34.5% increase in net sales to Rs 4750.53 crore in Q4 March 2013 over Q4 March 2012.
Gitanjali Gems is an integrated gems and jewellery (G&J) player with operations spanning across the entire G&J value chain. The company's business encompasses activities like rough diamond sourcing, cutting, polishing and distribution, jewellery manufacturing, jewellery branding and retailing.
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