India Ratings Upgrades Chemplast Sanmar to 'IND A+'/Positive, Limits Enhanced

India Ratings and Research (Ind-Ra) has upgraded Chemplast Sanmar Ltd's (CSL) Long-Term Issuer Rating to 'IND A+' from 'IND A-'. The Outlook is Positive.

Ind-Ra continues to take a consolidated view of CSL and its wholly-owned subsidiary, Chemplast Cuddalore Vinyls Limited (CCVL). CSL has provided a corporate guarantee towards loans of INR1,076.63 million availed by CCVL as of FY21. Moreover, CCVL has a significant scale and profitability, making the business strategically important to CSL's consolidated profile.

The upgrade and the Positive Outlook reflect a substantial improvement in CSL's consolidated credit profile after the completion of the initial public offering (IPO) in August 2021, healthy profitability over FY21-9MFY22, backed by strong polyvinyl chloride (PVC) prices, and Ind-Ra's expectation of an improvement in CSL's business profile over the medium term. This will be on the back of a consolidation of its market leading position in the paste PVC business, where the company plans to enhance the capacity, and a strong performance in other business segments.

Shares of Chemplast Sanmar Ltd was last trading in BSE at Rs. 473.50 as compared to the previous close of Rs. 481.25. The total number of shares traded during the day was 14294 in over 1013 trades.

The stock hit an intraday high of Rs. 476.70 and intraday low of 464.50. The net turnover during the day was Rs. 6739730.00.

Source : Equity Bulls

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ChemplastSanmar INE488A01050 SpecialtyChemicals RatingUpgrade