CARE downgrades rating of CMI Ltd to default grade

CARE has downgraded the rating from CARE BBB; Stable (Triple B; Outlook Stable) to CARE D (Single D) for the Long Term Bank Facilities and CARE A3 (A Three) to CARE D (Single D) for the Short Term Bank facilities availed by the Company vide their letter dated 25th September, 2020.

The revision in the rating assigned to the bank facilities of CMI Limited (CMI) factors in irregularities in the working capital facilities attributable to weak liquidity position of the company. The ratings also takes into account weak operational performance during FY20 (refers to the period: April 01 to March 31) which accentuated during Q1FY21 (refers to the period from April 1 to June 30) due to the pandemic and resultantly led to weakening of debt coverage metrics.

Shares of CMI LTD. was last trading in BSE at Rs.33.85 as compared to the previous close of Rs. 32.4. The total number of shares traded during the day was 1473 in over 37 trades.

The stock hit an intraday high of Rs. 33.85 and intraday low of 32.8. The net turnover during the day was Rs. 48914.

Source : Equity Bulls

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