CARE assigns credit ratings to Talbros Engineering bank facilities; Stock climbs 3.5%

The rating also favorably factors in TEL’s market position in axle shafts for the utility vehicles segment.

Sep 16, 2021 12:09 IST India Infoline News Service

Talbros Engineering Ltd has informed that Care Ratings has assigned a rating of CARE BBB+ with a Positive Outlook for long term bank facilities of Rs1.63cr and CARE BBB+ /CARE A2 with a Positive Outlook for short term bank facilities of Rs62.80cr.

The ratings assigned to the bank facilities of Talbros Engineering Limited (TEL) continue to derive strength from the experienced promoters along with their long track record of operations, and reputed customer-base by virtue of their strong association and long-standing relationship with Original Equipment Manufacturers (OEMs) including Mahindra and Mahindra Limited among others.

The rating also favorably factors in TEL’s market position in axle shafts for the utility vehicles segment, growing traction from the export market, improvement in the profitability margins and comfortable financial risk profile characterized by low overall gearing and healthy debt coverage indicators.

However, the ratings continue to remain constrained by modest scale of operations, customer concentration risk, susceptibility of margins to volatility in raw material prices and dependence on the fortunes and cyclical nature of the auto industry.

At around 12:28 PM, Talbros Engineering was trading higher by 3.49% at Rs248.80 per piece on Sensex.

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