PC Jeweller share price touched its 52-week low of Rs 21.05, down 8.5 percent in early trade after CARE Ratings downgraded the medium-term instrument of the company.
At 11.10 am, the stock of PC Jeweller was quoted lower by 6% to Rs 21.40. Volumes traded on the counter was 8.85 lakh shares on the BSE.
The rating agency downgraded the fixed deposit programme of the company to CARE D (FD).
The revision in the rating assigned to the medium-term instrument of company factors in stressed liquidity position and deterioration in the financial flexibility of the company.
As per the rating rationale, “the downgrade factors in instances of development of Letter of Credits and overutilisation of working capital limits for more than 30 days. The same is reflective of the fact that the liquidity profile of the group has deteriorated in the past few months on account of cash flow mismatches.”