CARE revises 'BB/Stable' rating on Rama Vision's long-term bank facilities

23 Feb 2022 , 12:26 PM

Rama Vision Ltd has informed that CARE Rating Agency has revised the ratings on the bank facilities of the Company.

Long-term ratings has been revised to CARE BB with Stable outlook from CARE BB-/Positive rating.

According to the rationale report, the revision in the rating of Rama Vision Limited (RVL) factors in the improvement in financial risk profile marked by growth in scale of operations and improvement in debt coverage indicators.

The rating continues to derive strength from experienced management and long track record of operations, comfortable capital structure and wide distribution network.

The rating, however, continue to remain constrained by weak profitability margins and elongated inventory holding period. Further, the rating remains constrained on account of foreign exchange fluctuation risk and highly fragmented and competitive industry.

At around 12:25 PM, Rama Vision was trading at Rs14.10 apiece down by Rs0.7 or 4.73% on the BSE.