Yesterday and today, Gayatri Projects has been on the persistent low. Yesterday, it hit a new 52-week low at Rs.69.40 and today too, it hit a new low at Rs.62.50. In five days, it has fallen over 36% - a four-year low.
The stock has been hitting a low ever since it was known that the lenders to the company have invoked pledged shares.
On 18th Nov, they invoked 50,397 pledged shares of the promoter; this comes after 55,206 pledged shares were invoked on 11th Nov.
The company’s financial situation is dire and CARE, last week revised the ratings of its long and short term bank facilities to 'CARE D', due to delay in servicing debt obligations. This rating indicates that company is already in default or is expected to be in default soon. “Stretched liquidity position of the company due to delays in receipt of receivables leading to cash flow mismatch resulting in delays in debt servicing,” is stated to be reason by CARE for this downgrade.