Till 10:05 am, a combined 2.03 million shares changed hands and there were pending sell orders for 813,725 shares on the NSE and BSE.
Brickwork Ratings said the rating downgrades factor increase in receivables resulting in tied up of working capital and its recent divestment limiting the profitability growth. The ratings is constrained on account of seasonal nature of tourism industry and exposure of Cox & King’s operations to macroeconomic factors like economic slowdown, foreign exchange fluctuations, geopolitical risk, competition from organized and unorganized players and working capital intensive operations, it said.
On June 11, another rating agency, Credit Analysis & Research (CARE) had revised the ratings assigned to the company's bank facilities. The revision in ratings takes into account lower than envisaged reduction in debt as on March 31, 2019.
“The rating strengths are tempered by exposure of the company’s travel business to macro-economic factors prevailing in the markets
to which it caters and the fragmented nature of the domestic travel industry. The timeliness, adequacy of the asset monetisation and the subsequent reduction in debt remains the key rating monitorable,” CARE Ratings said in press release.
The rating is also constrained on account of continued high levels of pledge shares by the promoters and low market capitalization, the rating agencies said.