Omaxe has been in the limelight since yesterday. The stock had hit the 20% LC at Rs.176.45 and this was after having hit a new high at Rs.222.20. Today, it hit the 20% LC the moment it opened for trade at Rs.141.20, which is also a new 52-week low.
The market is perturbed every time a company postpones a scheduled Board meet and that too something as significant as results meet. The company was to declare its Q4 earnings yesterday but instead announced that it has been postponed by a month.
The Board will now meet on 29th July to consider the Q4 results.
This is especially worrisome after Credit Ratings by Credit Analysis and Research Limited (CARE) downgraded the ratings of long term bank facilities of the company. It cited reasons of lower-than-envisaged project collection, subdued bookings, continued slump in the real estate sector and rising input costs. CARE also said that factors like execution of large township projects with relatively higher turnaround time in comparison to Omaxe’s debt maturity profile has created pressure on liquidity.