The assigned ratings factor in the established presence of Rama Phosphates Limited (‘RPL’) as a manufacturer of single super phosphate across the states of Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Gujarat, Uttar Pradesh and Haryana.
According to the Rationale report, the ratings also take into account the diversified product portfolio comprising phosphate fertilisers, sulphuric acid and soya based products as well as its highly integrated operational structure which enables cost competitiveness.
The ratings, however, remain constrained by RPL’s modest profitability margins led by low value addition involved in its soya business; nevertheless, the profitability in its fertilisers and chemicals segments remains healthy.
The Stable outlook on the [ICRA]BBB+ rating reflects ICRA’s opinion that RPL will continue to benefit from extensive experience of the promoters in the fertilisers and chemicals segments.
On Friday morning trading session, Rama Phosphates was currently trading at Rs130.75 per piece up by Rs1.45 or 1.12% from its previous closing of Rs129.30 per piece on Sensex.