The rating upgrade reflects CRISIL expectations of sustenance of Astrals’ improved business profile supported by improved capacity utilization levels, wider geographic presence and product portfolio.
The ratings reflect group’s leadership position in the CPVC pipes and fittings segment, supported by established brands and an entrenched market presence, and the experience of the promoter.
The ratings also factor in a strong financial risk profile. These strengths are partially offset by exposure to intense competition and to supplier concentration risk, and susceptibility of the operating margin to volatility in raw material prices and foreign exchange (forex) rates.
For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Astral and its subsidiaries.
At around 12:45 PM, Astral was trading at Rs2,109.80 apiece up by Rs2.15 or 0.1% on Sensex.