Gensol Engineering Share Price Rebounds Marginally After 40% Decline

Gensol Engineering Ltd.'s share price rebounded by over 5% on Friday, following a dramatic 40% decline over the past three days. The recent downturn was triggered by a rating downgrade from CARE Ratings, due to delays in servicing term loan obligations, as reported by the company’s lenders.

CARE Ratings lowered the company’s long-term bank facilities to CARE D from CARE BB+; Stable. Its short-term bank facilities were rated CARE A4+.

On Thursday, Gensol Engineering’s stock fell another 10%, adding to the 10% decline on Wednesday and the 20% drop on Tuesday. The stock hit its lower circuit limit, reflecting investor concerns over the company’s financial health and its ability to meet debt obligations.

Gensol Engineering, the flagship company of the Gensol Group, has a decade-long track record in the renewable power sector. The company provides engineering, procurement, and construction and operations and maintenance services for solar power projects. Additionally, it generates revenue from its electric vehicle leasing business.

The company’s recent quarterly earnings report revealed a decline in both its bottom line and operational performance. Gensol Engineering reported a 6.1% drop in net profit for Q3, with earnings of Rs 16.9 crore, down from Rs 18 crore in the same period last year.

Shares of Gensol Engineering rose as much as 5.42% to Rs 352.95 apiece. It pared gains to trade 2.90% higher at Rs 344 apiece, as of 09:51 a.m. This compares to a 0.21% decline in the NSE Nifty 50.

The stock has fallen 66.02% in the last 12 months. Total traded volume so far in the day stood at 92 times its 30-day average. The relative strength index was at 18.