Jagatjit Industries Ltd updates on rating

Acuite Ratings & Research Limited (Acuite) has assigned ACUITE B+ Stable Downgraded rating to the term loan facilities being availed by the Company viz. Jagatjit Industries Limited from Indusind Bank Limited.

Earlier, Acuite had assigned the ACUITE BB- / Outlook: Stable rating to the aforesaid facilities.

In view certain discrepancies, the Company has filed an appeal for review of rating.

The rating, however, is constrained by the high tenant risk in lease rental business as the entire facility has been leased out to few tenants, though a strong tenant profile reduces the risk to some extent. Availability of new tenant for vacant space of about 60,195 sq ft i.e. 28.51% of the total area available to be leased out is also a major concern. The rise in prices of the raw material like barley has severly impacted the EBITDA margins of the company . The Debt-Equity ratio maintained at high level of 4.58 Times for the FY 22 and further the company is about to take further Term Loan Facility for an Ethanol Plant Project in the current and next financial year that will further affect the ratio.

Shares of JAGATJIT INDUSTRIES LTD. was last trading in BSE at Rs. 113.05 as compared to the previous close of Rs. 107.70. The total number of shares traded during the day was 14000 in over 58 trades.

The stock hit an intraday high of Rs. 113.05 and intraday low of 113.05. The net turnover during the day was Rs. 1582700.00.

Source : Equity Bulls

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JAGATJITINDUSTRIES INE574A01016 RatingUpdate Downgrade