Shares of PC Jeweller fell over 8 per cent on Tuesday, a day after CRISIL downgraded the company's long-term and short-term ratings on bank loan facilities.
On the BSE, the scrip settled at Rs 22.75, diving 8.08 per cent. During the day, it slumped 10.1 per cent to its 52-week low of Rs 22.25.
On the NSE, the scrip plunged 8.06 per cent to end at Rs 22.8. Intra-day, it traded 10.28 per cent lower at Rs 22.25.
"CRISIL Ltd has downgraded its long-term and short-term ratings to the bank loan facilities of the company to CRISIL D," PC Jeweller said in a regulatory filing on Monday.
It further said, "the ratings reflect instances of LC (letter of credits) devolvement and overutilization in working capital limits, large working capital requirement and the risk of unfavourable regulatory changes. These weaknesses are partially offset by PCJ group's strong market position in manufacturing and retailing gold and diamond jewellery and the above-average capital structure."
However, the company said Indian jewellery demand during the second quarter at 101.6 tonne was almost a third lower year-on-year due to weaker consumer sentiments.
Besides, there was a decline of nearly 51 per cent in Indian bullion imports on quarterly basis.
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