OTHER GROUP COMPANIES
market

CRISIL upgrades rating on Pudumjee Paper Products' bank loan facilities; Stock climbs 3.4%

The ratings reflect PPPL’s established market position in the specialty paper segment.

June 29, 2022 11:47 IST | India Infoline News Service
CRISIL Ratings has upgraded its ratings on the bank loan facilities of Pudumjee Paper Products Limited (PPPL) to ‘CRISIL A/Stable/CRISIL A1’ from ‘CRISIL A-/Positive/CRISIL A2+’.

CRISIL Ratings has also migrated its rating on the fixed deposit programme of PPPL from ‘FA/Positive’ to ‘CRISIL A-/Positive’ and then simultaneously upgraded to 'CRISIL A/Stable' from ‘CRISIL A-/Positive’.

According to the rating rationale report, the upgrade reflects sustained improvement in business risk profile supported by recovery in demand and increased realizations during FY22 and continuation of enhanced operating margin during FY22.

The rating migration on the FD programme follows the revision in CRISIL Ratings’ rating scale for fixed deposit (FD) programmes, which is now aligned with the SEBI-standardised 20-point long term scale. 

The ratings reflect PPPL’s established market position in the specialty paper segment supported by extensive experience of the promoters and its wide product portfolio.

The rating also factors in its healthy financial risk profile. These strengths are partially offset by exposure to intense competition in the paper industry, and susceptibility of profitability to volatility in raw material prices.

At around 11:48 AM, Pudumjee Paper Products was trading at Rs36.35 per share higher by 3.41% on the BSE.

OPEN A DEMAT ACCOUNT & Get
FREE Benefits Worth 5,000

FEATURED ARTICLE

BLOGS

Open Demat Account

  • 0

    Per Order for ETF & Mutual Funds Brokerage

  • 20

    Per Order for Delivery, Intraday, F&O, Currency & Commodity