Kanpur Plastipack - Ratings upgraded to 'CRISIL A- / CRISIL A2+', outlook revised to 'Stable'

CRISIL Ratings has upgraded its ratings on the bank facilities of Kanpur Plastipack Ltd (KPL) to 'CRISIL A- / Stable / CRISIL A2+' from 'CRISIL BBB+ / Stable / CRISIL A2'.

The upgrade reflects a belief that the business risk profile of KPL will continue to improve, supported by optimal utilisation of the increased installed capacity, geographically diversified customer and supplier portfolios, and the recent rally in prices across the packaging industry. Sales worth Rs 458 crore has been reported for the first nine months of fiscal 2022 and should reach over Rs 600 crore by fiscal end, a 33% growth from sales worth Rs 452 crore in fiscal 2021; the operating margin remained stable at 11-13%.

The financial risk profile should continue to be healthy, despite capital expenditure (capex) of Rs 96.78 crore planned for the medium term.

The ratings continue to consider established market position of KPL, above-average operating efficiency and comfortable financial risk profile. These strengths are partially offset by exposure to intense competition in the packaging segment and limited diversification in revenue to few regions.

Shares of Kanpur Plastipack Limited was last trading in BSE at Rs. 112.85 as compared to the previous close of Rs. 118.95. The total number of shares traded during the day was 5951 in over 229 trades.

The stock hit an intraday high of Rs. 120.45 and intraday low of 110.00. The net turnover during the day was Rs. 673568.00.

Source : Equity Bulls

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