InvestorQ : What is the reason for the sharp fall in the prices of Indiabulls Group stocks?
Lavanya Subramanian made post

What is the reason for the sharp fall in the prices of Indiabulls Group stocks?

Answer
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Anamika Sodhani answered.
1 month ago


Indiabulls Group stocks came under pressure on Monday with Indiabulls Housing falling 14%, Indiabulls Real Estate falling 10% and other group stocks down 5%. The sharp fall came after the bonds issued by the company saw an outlook downgrade by Brickworks.

Brickwork Ratings had originally assigned “BWR A1+” for the CP issue but had reaffirmed “BWR AA+/AA’/Negative” on debt issuances of Indiabulls Housing. Despite confidence in the performance of the group, the outlook has been held at negative.

The stock has taken quite a beating due to the impact of the lockdown. However, it has seen deterioration in asset quality and profitability on account of the decreasing asset base and pressure on operating income in the last few quarters due to the impact of COVID-19.