Ess Dee Aluminium loses its shine

Yesterday, Ess Dee Aluminium had breached the lower circuit at Rs.204.70 and today, the stock price, at one point was down almost 20% at Rs.165. Volumes are up almost 9 times.

The company which is engaged in the manufacture of aluminium foils for packaging purpose, is down in the deep red today after rating agency, CARE, downgraded the stock to default rating or CARE ‘D’. This is down from the previous rating of BBB-. Instruments with the 'CARE D' rating are in default or are expected to be in default soon.

CARE has stated that the downgrade was on account of delays in debt servicing which in turn is on account of tight liquidity.

The company had ended Q2FY16 with a net loss of Rs.15 crore v/s net profit of Rs.14 crore in [revious Q2.