Acuite reaffirms ratings of Apollo Micro Systems' credit facilities; Stock rises

7 Sep 2022 , 10:19 AM

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB’ and short-term rating reaffirmed ‘ACUITE A3+’on the Rs210 crore bank facilities Apollo Micro Systems Limited (AMSL). The outlook is ‘Stable’. 

Further, Acuité has assigned its long-term rating of ‘ACUITE BBB’ on the Rs50 crore bank facilities Apollo Micro Systems Limited (AMSL). The outlook is ‘Stable’. 

According to the rating rationale report, the rating reaffirmed, follows the significant improvement in business risk profile followed by the healthy revenue growth in FY2022 backed by the continued healthy operating margin. 

The ratings also factor in its healthy financial risk profile led by healthy capital structure. 

However, the rating continues to remain constrained by the working capital-intensive nature of operations of the company due to a high inventory holding and a long receivable cycle.

At around 10:20 AM, Apollo Micro Systems Ltd is currently trading at Rs158.20 per share up by Rs1.1 or 0.7% from its previous closing of Rs157.10 per share on the BSE.

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