Buzzing stock: JBF Industries stock continues to dip since past one week

Rating agencies have downgraded the rating of JBF Industries due to delays in servicing its debt obligations. The rating has been downgraded to ‘D’. Earlier the ratings for short term and long-term bank facilities were BB+ and A4 respectively.

After implementation of GST, some adverse effects were seen in the textile sector, as the unorganised segment led to protesting and shutdowns in the market. This affected the working capital of the company and hence, led to delays in servicing its debt obligations to the lenders. 

The management expects to see revival from its current position and GST will have a positive impact on the industry and the company in the long run. 

On Friday, the stock had closed at Rs 223.45. Today, it opened at Rs 215.25 and fell to intraday low of Rs 198.50. Thus, in the morning session, the stock dipped by 12.5 percent. Last Monday, the stock was trading at Rs 278.10 level and since then a continuous downfall in the stock price is seen.

JBF Industries Ltd. is a manufacturer of polyester chips, polyester yarn and processed yarn from polyester chips. Around 75 percent of its domestic sales have applications in the textile sector.