CRISIL upgrades rating on Prince Pipes -; Fittings' bank facilities

6 Jan 2022 , 04:00 PM

CRISIL Ratings has upgraded its ratings on the bank facilities and commercial paper program of Prince Pipes and Fittings Limited (PPFL) to ‘CRISIL A+/Stable/CRISIL A1+’ from ‘CRISIL A/Positive/CRISIL A1’.

The upgrade reflects the sustained improvement in the company’s business risk profile driven by the healthy revenue growth and operating efficiencies.

The ratings reflect the strong business risk profile marked by its market position in domestic plastic pipe industry supported by diverse product portfolio, geographical presence, and end-user industry, extensive experience of promoters, and a robust financial risk profile.

These rating strengths are partially offset by presence in a highly competitive industry, moderate capacity utilization, susceptibility to volatility in raw material prices, and moderate working capital requirements.

CRISIL Ratings believes PPFL’s business risk profile will continue to benefit from the extensive industry experience of its promoters, its established market position and robust financial risk profile.

Prince Pipes & Fittings ended at Rs699.65 apiece up by Rs0.4 or 0.06% on the BSE.