CRISIL upgrades rating on Damodar Industries' bank facilities; Stock jumps 5%

21 Apr 2022 , 12:44 PM

CRISIL Ratings has upgraded its ratings on the bank facilities of Damodar Industries Ltd (DIL) to ‘CRISIL BBB-/Stable/CRISIL A3’ from ‘CRISIL BB+/Stable/CRISIL A4+’. Also, CRISIL Ratings has upgraded its rating on fixed deposits worth Rs 40 crore to ‘FA-/Stable’ from ‘FB+/Stable’.

According to the rationale report, the upgrade reflects improvement in the business and financial risk profiles of the company.

The ratings reflect the established market position of the company, its efficient working capital management and moderate capital structure. These strengths are partially offset by average debt protection metrics, vulnerability to fluctuations in raw material prices and foreign exchange (forex) rates.

On Thursday, at around 12:48 PM, Damodar Industries was trading at Rs70.60 apiece up by Rs3.55 or 5.29% on the BSE.