Sarda Energy & Minerals surges 5% after revision in outlook to 'Positive' by CRISIL

The rating on the short-term bank loan facilities has been reaffirmed at 'CRISIL A1.'

Sep 23, 2021 11:09 IST India Infoline News Service

Sarda Energy & Minerals
CRISIL Ratings has revised its outlook on the long-term bank facilities of Sarda Energy and Minerals Limited to ‘Positive’ from ‘Stable’, while reaffirming the rating at 'CRISIL A+’. The rating on the short-term bank loan facilities has been reaffirmed at 'CRISIL A1.'

The outlook revision reflects the expectation that the credit risk profile of SEML may improve, driven by superior operating efficiency supported by sector buoyancy and enhanced backward linkages.

The ratings continue to reflect the group's established market position, supported by diversified revenue streams and integrated nature of operations and a healthy financial risk profile.

These strengths are partially offset by exposure to risks related to the cyclical nature of the steel and ferroalloy industry and large investment in associate entities.

CRISIL Ratings has combined the business and financial risk profiles of SEML and SMAL, together referred to as the Sarda group. 

At around 11:43 AM, Sarda Energy & Minerals was trading at Rs708.40 apiece up by Rs33.7 or 4.99% on Sensex.

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