Gensol Engineering: After CARE Ratings cut Gensol’s rating because of debt servicing delays, the company’s shares attracted attention. ICRA decreased CARE’s credit rating after it was downgraded, claiming that the company had fabricated some loan repayment paperwork. Let’s learn more about the sudden crash of Gensol’s share!
Present Situation of Gensol Engineering Ltd.
With its RSI (Relative Strength Index) falling to 14, Gensol Engineering has reached oversold territory on the charts.
Note: A stock is said to be in the “oversold” zone if its RSI is below 30.
As of today, Wednesday, March 12, the share price of Gensol Engineering Ltd. fell by an additional 5%, continuing its sixth straight session of fall.
In the last 12 trading sessions, the stock has dropped more than 50%, and in six of those sessions, it was stuck in a lower circuit. On the National Shares Exchange (NSE), Gensol Engineering’s shares at 11:00 a.m. were trading at ₹276.05.
Gensol Engineering CFO Resignation
It was recently revealed by the company that Ankit Jain, Gensol Engineering’s CFO (Chief Financial Officer), resigned from his position for personal reasons. As per SEBI guidelines, his resignation will become effective on March 13, 2025. Investor anxiety at the abrupt departure of a key CEO has caused Gensol shares to become more volatile.
Moreover, panic selling was previously sparked by other online accusations that claimed Gensol Engineering had fabricated records pertaining to its debt servicing history, casting doubt on the business’s compliance standards and financial integrity.
How is Gensol Engineering Thriving Now?
A 2.3% stake in the company, or 9,00,000 equity shares, was sold off by the promoters earlier this week. An announcement of a new capital injection was made by Gensol Engineering in an effort to offset the negative attitude that usually accompanies such a move.
The business reported that by converting warrants into stock, its promoters had contributed Rs. 29 crore. According to an exchange filing, equity shares (4,43,934) at a price of Rs. 871 each will be issued in return for these warrants. All this coming from the end of the company proves that the company is trying its best to stay in the game.
Final Verdict
The investment picture that Gensol Engineering offers is complicated. Although the company has shown significant development and works in a promising field, important risk considerations such as volatility of share price and excessive promoter pledging necessitate cautious evaluation.
Before taking any investment decisions, investors should balance the potential for profits in the growing renewable energy sector against the inherent hazards. Because the stock market is so dynamic, it is imperative to be up to date on the performance of the firm and the changing state of the market.
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