Ind Ra upgrades Vadilal Enterprises credit rating to 'BBB+/Stable'; Stock plunges 5%

11 Oct 2022 , 10:52 AM

India Ratings and Research (Ind-Ra) has upgraded Vadilal Enterprises Limited’s (VEL) Long-Term Issuer Rating to ‘IND BBB+’ from ‘IND BBB’. The Outlook is Stable. Further, the short-term ratings has been upgraded to ‘IND A2’.

According to the rating rationale report, Ind-Ra continues to take a consolidated view of VEL and its group company, Vadilal Industries Limited (‘IND BBB+’/Stable), together referred to as the Vadilal Group (VG), while arriving at the ratings on account of the significant operational linkages between the two entities.

The upgrade reflects consistent qoq improvement in VG’s operating performance over FY22-1QFY23, and the likelihood of continued improvement in the same during FY23. The rating action also reflects the improvement in the consolidated liquidity position, the rating agency said.

At around 10:55 AM, Vadilal Enterprises Ltd is currently trading at Rs3,023.40 per share down by Rs159.1 or 5% from its previous closing of Rs3,182.50 per share on the BSE.

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