Equity Alert: Edelweiss cuts Himatsingka Seide rating to "reduce"

[K.Karthik Raja]

Equity Alert: Edelweiss cuts Himatsingka Seide rating to "reduce"
MUMBAI--11:44AM--Brokerage Edelweiss has downgraded Himatsingka
Seide to
"reduce" from "accumulate" citing high risk due to derivative risks
and
stabilisation of its Hassan plant.
At 11:43AM, shares of Himatsingka Seide were trading at 46.25
rupees, up
2.78% from previous close.
Dealers said the share price largely ignored the rating cut and
the stock
saw buying from "interested" circles.
The brokerage, in a note to clients, said the textile company's
inability to
stabilise its Hassan plant operations has led to significant decline
in margins
due to additional expenses, which were not capitalised.
Edelweiss also expressed concern over the size of the company's
exposure to
derivatives, which has the potential to erode the company's networth
significantly.
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