ICRA assigns ratings to Deepak Spinners' bank facilities; Stock sheds 1%

17 Feb 2022 , 10:11 AM

ICRA has assigned the ratings to the credit instruments of Deepak Spinners Ltd. According to the rationle report, long-term bank ratings has been assigned at [ICRA] A- (Stable) while short-term ratings has been assigned at [ICRA] A2+.

The ratings consider Deepak Spinners Limited’s (DSL) long operational track record of more than three decades in manufacturing of blended synthetic yarns and its established relationship with customers, which lead to repeat orders, mitigating off-take risks.

The Stable outlook on the [ICRA] A- rating reflects ICRA’s opinion that DSL’s credit profile is likely to remain comfortable despite a likely moderation in the operating margin, going forward, from the currently elevated level.

While a capex of around Rs50- 70 crore envisaged in the near to medium term is unlikely to materially impact the company’s liquidity and capital structure, the same is likely to enhance DSL’s scale of operations and value addition, going forward.

At around 10:10 AM, Deepak Spinners was trading at Rs284 apiece down by Rs2.9 or 1.01% against its previous closing of Rs286.90 apiece on the BSE.