Acuite Ratings upgrades ratings of Permanent Magnets to 'BBB/A3+'

Permanent Magnets (PML) said that Acuite Ratings & Research has upgraded its long-term rating on the bank facilities of the company to 'ACUITE BBB/Stable' from 'ACUITE BBB-/ Stable'.

The agency has also upgraded the companys short-term rating to 'ACUITE A3+ from ACUITE A3.

AcuitRatings & Research stated that the rating upgrade factors in the groups stable business risk profile which is expected to strengthen further with augmentation in capacity utilisations and addition of new capacities facilitating diversification in product mix.

The rating also factors in groups sustained healthy financial risk profile, supported by a strong net worth base, low gearing and comfortable debt protection metrics. The rating also reflects the groups long standing operational track record and experienced management.

 

However, the rating remains constrained by the groups working capital-intensive operations and susceptibility of profitability to volatility in raw material prices in a highly competitive and fragmented industry.

Permanent Magnets (PML) is engaged in manufacturing of Alnico (aluminium, nickel and cobalt) magnets & magnetic assemblies, parts and accessories of electricity meters, gas meters and electrical vehicles.

The scrip rose 0.54% to currently trade at Rs 840.55 on the BSE.

Powered by Capital Market - Live News