Gensol Engineering drops 55% in thirteen days

Shares of Gensol Engineering lost 54.85% in thirteen consecutive trading sessions from its recent closing high of Rs 579.60 on 21 February 2025.

The counter came into the limelight after the rating agency downgraded the company's long-term bank facilities of Rs 639.70 crore from CARE BB+ (Stable) to CARE D and its long-term/short-term bank facilities of Rs 76.30 crore from CARE BB+ (Stable) / CARE A4+ to CARE D / CARE D. This downgrade reflects a significant increase in the perceived risk of default on the company's debt obligations.

On the BSE, 2.44 lakh shares were traded in the counter so far compared with average daily volumes of 1.32 lakh shares in the past two weeks.

The stock hit a 52-week low of Rs 261.70 today. The stock hit a 52-week high of Rs 1,125.75 on 26 June 2024.

The counter lost 76.75% from its 52-week high of Rs 1,125.75 on 26 June 2024.

The stock had underperformed the market over the past month, down 56.54% compared with a 3.06% fall in the Sensex.

The scrip had also underperformed the market in the past three months, dropping 66.15% as against the Sensex's 10.14% decline.

The counter had underperformed the market in the past year and tumbled 68.49% as against a 1.44% jump in the Sensex.

On the technical front, the stock's daily RSI (relative strength index) stood at 12.859. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading below its 50-day and 100-day simple moving average (SMA) placed at 622.65, 705.42, and 823.53, respectively. These levels will act as crucial resistance zones in the near term.

A combination of high debt, issues with falsified documentation, and ratings downgrades has contributed to the sharp decline in Gensol Engineering's stock price.

Founded in 2012, Gensol Engineering has over a decade of experience in the renewable energy sector. Its diverse business interests include EPC and O&M services for solar power projects, EV leasing through its partnership with Blu-Smart, and the upcoming EV manufacturing division, with a plant currently under construction in Pune.

The company's consolidated net profit rose 32.52% to Rs 16.91 crore on a 56.42% increase in revenue to Rs 344.51 crore in Q3 FY25 over Q3 FY24.