Ind-Ra assigns strong ratings to JK Tyre's subsidiary Cavendish Industries; stock soars 5%

The credit rating agency assigned IND A- / Stable rating on Long-term loans. The rating on Fund-based and non-fund based limits was assigned at IND A- / Stable / IND A2+.

Apr 08, 2021 11:04 IST India Infoline News Service

India Ratings & Research Pvt. Ltd.(and-Ra) has assigned the ratings for various facilities of Cavendish Industries Limited (CIL) a subsidiary of JK Tyre & Industries Ltd.

The credit rating agency assigned IND A- / Stable rating on Long-term loans. The rating on Fund-based and non-fund based limits was assigned at IND A- / Stable / IND A2+.

“The assigned rating and the stable outlook reflects, CIL's strong operating performance in FY21 on the strength of strong demand from replacement markets, higher operating efficiencies, leaner cost structure and higher capacity utilisation, which has resulted in improved profitability,” JK Tyre shared Ind-Ra’s rating rationale.

Ind-Ra further expects healthy double-digit growth in revenues on the back of robust replacement market demand in FY22.

JK Tyre & Industries Ltd stock was bullish during Thursday's trade. At around 11.08 am, each stock was trading at Rs123.35 up Rs5.90 or 5.02% from its previous closing of Rs117.45 per piece on the BSE.

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