Bombay Burmah stock jumps 14%, clocks fresh 52-week high of Rs 1,375
Bombay Burmah share price NSE: Bombay Burmah Trading Corporation Ltd, NSE: BBTC shares zoomed by as much as nearly 14 per cent to clock a 52-week high of Rs 1,375 apiece on the NSE, surpassing an earlier peak of Rs 1,297.75 touched on September 8.
Bombay Burmah share price NSE: Bombay Burmah Trading Corporation Ltd, NSE: BBTC shares zoomed by as much as nearly 14 per cent to clock a fresh 52-week high of Rs 1,375 apiece on the NSE, surpassing an earlier peak of Rs 1,297.75 touched on September 8, 2023. The trends follow in the counter despite India Ratings revising the Bombay Burmah Trading Corporation’s outlook to negative from stable while affirming the long-term issuer rating at ‘IND AA’ in a report dated September 8. Bombay Burmah shares finished at Rs 1,258.8, up by Rs 52 or 4.31 per cent on NSE.
India Ratings in its report read, "The rating downgrade and the negative outlook reflect a sustained elevated consolidated net leverage (net debt/EBITDA; FY23: 1.49x, FY22: 1.96x, FY21: 0.30x) due to increase in external debt to support group entities. India Ratings expects the leverage to remain elevated over the near-to-medium term.
Mentioning BBTCL holds 32.61% stake in Go Air, India Ratings added "The downgrade also considers an insolvency proceeding of Go Airlines India Limited (GoAir; 33% associate), a SEBI action to ban Bombay Dyeing and Manufacturing Company Limited (BDMCL; 44% associate) and its promoters from the securities market for two years, and continued EBITDA losses at the BBTCL standalone level," However, the ratings benefit from the consistent upstreaming of dividends from BIL to BBTCL, the report further said.
Here's how the counter moved during the session:
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