Gravita India hit the 10% LC at Rs.69; a new 52-week low.
The stock turned negative after the company announced that its order was cancelled.
The company had received an order for supply of 18,000 MT of Pure Lead and Lead Bullion worth Rs. 300 crore from Kyen Resources Pte. Ltd., Singapore as informed by company to exchanges on 15th March, 2018. But this could not be completed and the contract entered with them has been terminated due to some management and financial issues at the end of Kyen Resources Pte. Ltd., Singapore.
Till date, the company said that it has supplied approx 3,800 MT of material to Kyen Resources and company has planned to divert the remaining supply of 14,200 MT to some other customers and management of the company is of the view that termination of above contract will not have any material impact on the financials of the company as it is already having an order book of approx Rs. 260 crore in hand for Lead, Aluminium and Plastic products.
Yet, in the current scenario, the market is unhappy with the order cancellation.