CARE assigned CARE BB to long term bank facilities with stable outlook.
The short term bank facilities has been reaffirmed by CARE A4.
According to the rationale report, the rating derives strength from the company’s experience in the textile segment, stable operations with moderate profitability margins and an improvement in capital structure and debt coverage metrics with a satisfactory debt servicing track record since April 2019.
PEL’s rating is however constrained by exposure to raw material price, foreign exchange risk and concentration in customer and supplier base.
Pioneer Embroideries was currently trading at Rs39.85 per piece up by Rs0.35 or 0.89% on the BSE, at around 1:15 PM.