Infomerics assigns rating to Bambino Agro Industries' long-term facilities; Stock tumbles 5.5%

30 Mar 2022 , 02:32 PM

Bambino Agro Industies Limited has received Credit Rating by Infomerics Valiration and Rating Prt. Ltd. for its Long Term Bant Facilities.

Infomerics assigned IVR BBB-/ Credit Watch with Developing Implications (IVR Triple B Minus under Credit watch with Developing Implications) to long-term ratings amounted Rs75.91 crore.

According to the rationale report, the rating assigned to the bank facilities of Bambino Agro Industries Limited (BAIL) derive strength from its strong brand recognition, widespread distribution network and improvement in financial performance in FY21. Further, the rating also note its adequate debt protection metrics.

However, these rating strengths are partially offset by its exposure to intense competition, exposure to raw material price fluctuation and quality risks. Moreover, the rating has been placed under credit watch with developing implications owing to uncertainty in respect to an outcome of a petition filed in National Company Law Tribunal (NCLT) against the company by two of its shareholders.

Infomerics will continue to monitor the developments in this regard and will take a view on the ratings once the exact implications of the above on the credit risk profile of the company are clear.

At around 2:33 PM, Bambino Agro Industries was trading at Rs333.50 apiece down by Rs19.35 or 5.48% on the BSE.