Sangal Papers hits 5% upper circuit after receiving reaffirmation in credit ratings by Brickwork

The Outlook of the company is changed from “Negative” to “ Stable” due to the increase in the demand of craft papers in the FMCG sector and Pharma sector.

Oct 19, 2021 12:10 IST India Infoline News Service

Stock-market-bull
Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs21.90cr of Sangal Papers Ltd.

BWR has reaffirmed the rating of Sangal Paper Limited to BWR BBB- (Stable)/ A3 deriving its strength from the experience of the management, moderate financial risk profile as marked by comfortable tangible Net worth, comfortable gearing ratio and moderate debt protection metrics .

However the rating is constrained by the profitability exposed to volatility in the raw material prices, Intense competition and fragmented industry, environmental and regulatory risks and intensification of Covid-19 on the working of the company.

The Outlook of the company is changed from “Negative” to “ Stable” due to the increase in the demand of craft papers in the FMCG sector and Pharmaceutical sector in India and also abroad. 

On Sensex, Sangal Papers was trading at Rs120.75 apiece up by Rs5.75 or 5%, at around 12:45 PM.

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