Gensol Engineering Shares Hit Record Low Amid Credit Downgrades, Drop 35% in Three Days

• Gensol Engineering shares hit an all-time low of ₹334.80, locked at a 10% lower circuit for the second consecutive session on March 6.
• The stock has plunged 35% in three days, following credit rating downgrades by CARE and ICRA.

Company’s Response & Debt Reduction Plan

• Gensol plans to sell assets to reduce its ₹1,146 crore debt and improve its debt-equity ratio of 1.95.
• The company denied allegations of falsification claims and formed a committee to review the matter, reaffirming its commitment to transparency and accountability.
• Despite the concerns, Gensol highlighted its strong financials, including:
  • ₹7,000 crore order book
  • 42% revenue growth to ₹1,056 crore in the first nine months of FY24
  • 89% rise in EBITDA to ₹246 crore
  • 34% profit growth to ₹67 crore

Investors remain cautious as the market reacts to the credit downgrades and debt concerns.