CRISIL reaffirm ratings on GMM Pfaudler's facilities worth Rs200 core; stock up ~1%

17 Aug 2022 , 03:24 PM

GMM Pfaudler Limited informed that CRISIL Ratings has reaffirmed its long-term rating as ‘CRISIL AA-’. Further, the rating agency has given a Stable outlook on long-term facilities.

GMM Pfaudler’s short-term bank facilities are rated as ‘CRISIL A1+’.

Total facilities reviewed by the rating agency stood at Rs200 crore.

As per the rating rationale shared by CRISIL, the ratings continue to reflect the company’s leadership position in the glass-lined equipment (GLE) market, as well as the Pfaudler group’s strong technical expertise and market presence in international markets.

These advantages are offset in part by limited revenue diversity outside of the GLE segment, a high working capital requirement, and a moderate, but improving financial risk profile.

The group’s business risk profile is expected to improve further in the medium term following the acquisition of a 100% stake in 17 Pfaudler entities (target entities), which has elevated the company to the forefront of corrosion-resistance technologies, systems, and services.

At around closing, GMM Pfaudler was trading at Rs1,593.75 apiece, up by 0.93% from its previous closing of Rs1,579.05 on the BSE.