Acuite awards credit rating of 'AA' on long-term facilities of Dollar Industries; Stock up 1%

5 Jan 2022 , 09:26 AM

Acuite Ratings & Research Limited has awarded a credit rating of ACUITE AA / Stable for long-term facilities and ACUITE Al+ / Stable for short-term facilities, to Dollar Industries Limited.

“Acuite has assigned the long term rating of ‘ACUITE AA’ and the short term rating of ‘ACUITE A1+’ on the Rs205.67cr bank facilities of Dollar Industries Limited (DIL). The outlook is ‘Stable’.

The rating on DIL takes cognizance of the strong business position of the company marked by its long track record and established brand equity in the hosiery innerwear industry supported by its vast distribution network and diversified geographical presence,” company shared Acuite’s rating rationale.

Acuite also derives comfort from DIL’s tie-up with a reputed international brand to mark its presence in the super premium segment, company’s semi-integrated in-house manufacturing facility in Tirupur, robust financial risk profile and consistent increase in the company’s internal cash accruals resulting in moderate utilization of fund based limits.

However, the rating is constrained by the company’s elongated working capital cycle and susceptibility to volatility in raw material prices.

At around 9.30 am, Dollar Industries Limited was trading at Rs431.00 per share up Rs4.65 or 1.09% on the BSE.