Cox & Kings shares hit 52-week low after credit rating downgrade

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Published: June 27, 2019 3:13:08 PM

Shares of tour operator Cox & kings hit a 52-week low on Thursday after rating firm Brickwork Ratings downgraded its rating to BWR AA - Stable from BWR AA stable for its Rs 50-crore non-convertible debentures or NCDs.

Cox & kings shares hit their 52-week low credit rating downgrade

Shares of tour operator Cox & kings hit a 52-week low on Thursday after rating firm Brickwork Ratings downgraded its rating to BWR AA – Stable from BWR AA stable for its Rs 50-crore non-convertible debentures or NCDs. The rating firm retained its commercial paper rating to BWR A 1 + for Rs 2,060 crores. On June 17, CARE Ratings had downgraded its rating. On a year-to-date basis, the stock is down 73 per cent. Today, on BSE, the shares of Cox & Kings had opened at Rs 46.60 per share against the previous close of Rs 45 per share. It lost 10 per cent in the intraday trading to hit its 52-week low at Rs 40.50 on BSE. On NSE also, the stock lost nearly 10 per cent to Rs 40.85 per share. 

CARE Ratings had also revised its rating downwards on June 17. The stock has fallen more than 73 per cent in a year’s time. The total debt of Cox & Kings in FY19 was at Rs 3,238 crores, as compared with Rs 4,014 crore in FY18. Sale of the education business has helped the company in paring its debt to a certain extent. The firm has planned another monetisation of an overseas asset by the end of the calendar year 2019 to reduce its debt.,” according to the rating agency.

CARE Rating said Cox & Kings reported a significant surge in receivables to Rs 2,031 crore in FY19 from Rs 1,524 crore in FY18, on a standalone basis. On account of rise in debtors, the firm’s cash flow from operations remains negative. However, it had liquidity in the form of cash and cash equivalents of Rs 1,830 crore as of March 2019.

In a bid to minimizing its debt, the tour operator Cox & Kings has been downscaling its operations since the last few years. In October last year, the company auctioned its education tour business in Europe to Midlothian Capital Partners for an enterprise valuation of Rs 4,380 crore.

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