CARE reaffirms ‘A1+' rating on Commercial Paper of KRBL Limited; stock jumps~2%

22 Sep 2022 , 02:37 PM

KRBL Limited informed that CARE Ratings Limited (CARE) has reaffirmed the ‘CARE A1+’ rating on the Commercial Paper Limits of the company.

The rating agency has reviewed commercial paper worth Rs500 crore.

The reaffirmation of the rating granted to KRBL’s commercial paper instrument continues to draw strength from the experienced promoters with a lengthy track record of operations in the rice business. In both the local and foreign markets, the firm has a well-established brand name and market position in the basmati rice sector.

These rating strengths are, however, partially offset by the inherently working capital-intensive nature of operations, which is caused by the high inventory levels necessary to be maintained due to the seasonality of basmati paddy supply (October to December), said CARE in its rating rationale.

At around 2.39 PM, KRBL was trading at Rs375.60 up by 2.36% from its previous closing of Rs366.95 on the BSE. The scrip touched intraday high and low of Rs381.40 and Rs358.35 respectively.

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