India Ratings has assigned a Long Term Issuer Rating of IND BBB, with a Stable Outlook, to Pioneer Embroideries Limited (PEL). IND BBB/Stable rating reflects moderate safety and moderate credit risk. This marks the reinstatement of an Investment Grade Rating for the Company after a long gap. PEL has presence in two business verticals namely, Specialised Polyester Filament Yarn (SPFY) where it owns the brand "SILKOLITE", and Embroidered and Laces (E&L), which also includes the iconic "HAKOBA" brand.
The new rating is for debt facilities amounting to Rs. 30.87 crores and exhibits stronger credit profile as against existing credit rating of CARE BB+. India Ratings, noted the improvement in the operational and financial performance of the Company for FY22. The agency expects the credit metrics to remain stable in the near term.
Commenting on the rating upgrade, Mr Deepak Sipani, CFO, Pioneer Embroideries Limited, said, "The Long Term Issuer Rating of BBB / Stable for us is a result of a steadily-improving operational performance and deleveraging efforts undertaken in recent years. PEL has successfully navigated the tough period, including the pandemic phase, and is now set to further improve its revenues and profitability with the planned capacity expansion in value-added products."
Shares of Pioneer Embroideries Limited was last trading in BSE at Rs. 54.55 as compared to the previous close of Rs. 55.65. The total number of shares traded during the day was 1807 in over 87 trades.
The stock hit an intraday high of Rs. 56.50 and intraday low of 54.40. The net turnover during the day was Rs. 100238.00.