Gensol Engineering shares are on the path of collapse after the company shares hit the lower circuit with a cumulative decline of a mammoth 10 per cent on Thursday, March 6.

Gensol Engineering Hits Lower Circuit

The company shares have been under pressure recently, as the credit rating agencies CARE and ICRA have downgraded the company stocks.

The company, as per reports, has a debt obligation is around 20 crore per month, and would require Rs 60 crore, for the next 3 month.

Following the downgrades, the Ahmedabad-based engineering company said that debt reduction would be accomplished by the revenues of several asset sales. With Rs 1,146 crore in total current debt and Rs 589 crore in reserves, the company's debt-to-equity ratio is 1.95.

Company Shares On Declines

In the previous quarter, the company saw its profit increase by 34 per cent, jumping to Rs 67 crore. Ina addition, there was also a 42 per cent rise in revenue, as it rose to Rs 1,056 crore in the first nine months of FY25.

Gensol Engineering Limited, the flagship company within the Gensol Group, was established in 2012.

The company specialises in engineering, procurement, and construction (EPC) services, focusing on the solar power sector.

Over the past week, the progress of the company shares look even more bleak, as the company shares have shrunk by a colossal 39.07 per cent or Rs 214.65.

Gensol Engineering Shrinks More

This took the overall value of the company shares to Rs 334.80 per piece. This slide in the value of the stocks has been ever more grave in the past three days, since March 4.

Thanks to today's trade, the company also hit its 52-week low of Rs 334.80 per share. This is only a shadow of Gensol Engineering's 52-week high of Rs 1,124.90, which was achieved in February of 2024.

Over the past month of trade, the company shares have shrunk by a monumental 53.06 per cent or Rs 378.50.