CARE revise ratings on Everest Kanto's bank facilities worth Rs209.55 crore; stock slips ~1%

28 Jul 2022 , 01:15 PM

Everest Kanto Cylinder Limited informed that the rating agency CARE Limited has Reclassified and Revised the ratings assigned to its bank facilities worth Rs209.55 crore.

As per the details, CARE has revised the long-term ratings of bank facilities worth Rs53 crore (enhanced from Rs2.70 crore) to ‘CARE A-’ from the existing ‘CARE A3+’. Further, the rating agency has given a Stable outlook on the same.

While long-term facilities worth Rs81 crore were also assigned a ‘CARE A-’ rating, revised from the existing ‘CARE BBB+’ rating. These facilities are given a Stable outlook by CARE.

CARE assigned a short-term ‘CARE A2’ rating against existing ‘CARE A3+’ on instruments worth Rs75.55 crore.

CARE stated that the higher rating assigned to Everest Kanto’s bank facilities reflects an increase in the scale of operations and cash accruals during FY22 as a result of increased CNG adoption in automobiles, as well as increased demand for cascades for CNG stations and City Gas Distribution.

The ratings take into account the favourable industry scenario, which includes a positive demand outlook for high-pressure seamless steel cylinders.

At around 1.18 PM, Everest Kanto Cylinder was trading at Rs169 down by Rs0.85 or 0.5% from its previous closing of Rs169.85 on the BSE. The scrip touched intraday high and low of Rs172 and Rs166.30 respectively.