Ind Ra assigns Lagnam Spintex long-term issuer rating at 'BBB-' with Positive outlook

14 Jan 2022 , 02:46 PM

India Ratings and Research (Ind-Ra) has assigned Lagnam Spintex Limited (LSL) a Long-Term Issuer Rating of ‘IND BBB-‘. The Outlook is Positive while short-term ratings has been assigned at IND A3.

The ratings reflect LSL’s strong credit metrics backed by the absence of any debt-funded capex, experienced promoters and the company’s track record of over a decade in the manufacturing of cotton yarn.

As per rationale report, the Positive Outlook reflects Ind-Ra’s expectation of a significant improvement in LSL’s scale of operations and EBITDA margins in FY22, leading to an improvement in the overall credit metrics. Furthermore, an increase in the working capital limits is also likely to support the overall liquidity position.

On Friday at around 2:45 PM, Lagnam Spintex was trading at Rs83 per piece higher by 5.67% on the NSE. The scrip hit its  52-week high on January 07, 2022 at Rs91.90 per piece on NSE platform.