CRISIL reaffirms Elgi Equipments' ratings on facilities worth Rs456 crore; stock skids ~3%

23 Sep 2022 , 03:15 PM

Elgi Equipments Limited informed that the rating agency CRISIL Limited has reaffirmed the rating assigned to the bank facilities of the company.
The total Bank loan facilities considered for rating is Rs456 crore, which has been enhanced from Rs431 crore.

The ratings continue to reflect the Elgi group’s established market position and strong brand presence in the Indian air compressor sector, as well as the company’s capacity to pass on commodity price increases and maintain a stable financial risk profile.

Its market position is bolstered by its capacity to produce a diversified variety of compressors, allowing it to serve a diverse range of end-user sectors such as steel, heavy engineering, and automotive.

These advantages are compensated in part by sensitivity to competitive pressure, limited, albeit increasing, the performance of overseas subsidiaries, and cyclical demand from certain end-user industries, said CRISIL in its rating rationale.

At around 3.19 PM, Elgi Equipments was trading at Rs450.10 down by 2.88% from its previous closing of Rs463.45 on the BSE. The scrip touched intraday high and low of Rs469.20 and Rs443.95 respectively.

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