CRISIL assigns rating to Sukhjit Starch -; Chemicals' bank facilities; Stock ends 2.5% higher

9 Feb 2022 , 03:49 PM

CRISIL Ratings has assigned its ‘CRISIL A/Positive/CRISIL A1’ ratings to the bank facilities and ‘FA+/Positive’ rating to the fixed deposits programme of Sukhjit Starch and Chemicals Ltd (SSCL).

As per rationale report, the ratings reflect the strong market position of SSCL as a leading manufacturer of starch and its derivatives in the domestic maize processing industry.

The ratings also factor in the extensive industry experience of the promoters along with the strong operational track of the company and its diverse and reputed clientele.

The financial risk profile remains healthy due to strong debt protection metrics. These strengths are partially offset by susceptibility of the operating margin to volatility of raw material prices and regulatory changes.

The positive outlook reflects the expectation of healthy ramp-up of operations over the medium term supported by better utilisation of the recently commissioned capacity. 

CRISIL Ratings has considered the standalone business and financial risk profiles of SSCL and factored in the debt of subsidiary Sukhjit Mega Food Park & Infra Ltd (SMFP), which is guaranteed by SSCL.

Sukhjit Starch & Chemicals ended at Rs468 per piece up by Rs11.05 or 2.42% on Sensex.