CARE reaffirms rating on Caprihans India's bank facilities worth Rs90 crore; stock rises ~2%

6 Sep 2022 , 02:49 PM

Caprihans India Limited informed that CARE Ratings Limited has reaffirmed the ratings assigned to the company’s bank facilities.

The facilities reviewed by CARE include Long-term/short-term bank facilities worth Rs41.75 crore and short-term bank facilities worth Rs48.25 crore.

CARE reaffirmed its long-term rating at ‘CARE A-’ with a Stable outlook. Further, the short-term rating has been reaffirmed at ‘CARE A2+’.

The reaffirmation of the ratings assigned to Caprihans India’s bank facilities continues to benefit from its long operational track record in the packaging industry, established procurement and distribution network in domestic and export markets, and long-standing relationships with well-established/reputed clientele.

Furthermore, the ratings take into consideration revenue growth while profit margins remain moderate, resulting in steady ratings.

Additionally, the ratings are backed by the company’s solid financial risk profile, which is supported by low overall gearing, comfortable debt coverage indicators, a modest working capital cycle, and enough liquidity, stated CARE in its rating rationale.

At around 2.55 PM, Caprihans India was trading at Rs150 up by 2.11% from its previous closing of Rs146.90 on the BSE. The scrip touched intraday high and low of Rs152.30 and Rs146.05 respectively.

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