Acuite reaffirms rating of Superhouse Limited

Acuité has reaffirmed the long-term rating of 'ACUITE A-' (read as ACUITE A minus) and the short term rating of 'ACUITE A2+' (read as ACUITE A two plus) on Rs 250.00 crore bank facilities of Superhouse Limited (SL). The outlook is 'Stable'.

The reaffirmation of ratings derive comfort from extensive experience of promoters spanning over four decades in leather industry, long track record of operations, group's strong distribution network and reputed as well as diversified customer base across various industries. The rating also factors in healthy financial risk profile of the group marked by low gearing of 0.39 times as on 31st March 2021 which saw a minuscule dip and stood at 0.42 times in FY 2022, improved debt-coverage indicators as evident from the increment in interest coverage ratio to 6.87 times in FY 2022 vis a vis 5.02 times in FY2021 and moderate debt service coverage ratio which saw slight improvement and stood at 1.47 times in FY 2022 vis a vis 1.35 times in FY 2021. The group has strong net worth, which stood at Rs. 374.83 crore as on 31st March 2021 which further increased to Rs. 415.54 Cr in FY 2022 on account of moderate profitability and healthy ploughing back of profits. The above strengths are underpinned by working capital intensive nature of operation and intense competition in the industry. GCA Days of the group remained at a higher level in the past years and have further moderated and stood at 268 days in FY 2022. The stretch in GCA days is mainly attributed to incessant increase in inventory holding period. Going forward, the ability of the group to further sustain its scale of operations along with the effective management of its working capital cycle and financial risk profile would be the key rating sensitivities.

Shares of Superhouse Limited was last trading in BSE at Rs. 187.20 as compared to the previous close of Rs. 187.50. The total number of shares traded during the day was 218 in over 23 trades.

The stock hit an intraday high of Rs. 191.60 and intraday low of 186.05. The net turnover during the day was Rs. 41104.00.

Source : Equity Bulls

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