The debt reduction can lower the company’s interest expense by about Rs10 crore in the September quarter, according to IIFL Institutional Equities’ estimates. So, based on IIFL estimates, this amount can come down by around 14% and make a meaningful impact on net profit. The company over the years chased an incoherent business growth strategy, notably in overseas markets. While these concerns have weighed on the stock for some time, the comments on debt reduction and organic growth focus have now come as a relief. So, if the current momentum in the business continues and Cox & Kings delivers on the promise of further debt reduction, analysts expect the stock to rerate.

Source: Mint September 27, 2016 18:56 UTC