Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Stock Report

| More

Shankara Building Products Limited's rating downgraded to 'CRISIL BBB+ / Stable / CRISIL A2'

Posted On: 2020-03-25 21:24:37

CRISIL has downgraded its rating on bank facilities of Shankara Building Products Ltd (Shankara; a part of the Shankara Buildpro group) to 'CRISIL BBB+/Stable/CRISIL A2' from 'CRISIL A-/Negative/CRISIL A2+'.

CRISIL also has downgraded its rating on the commercial paper to 'CRISIL A2' from 'CRISIL A2+'.

The downgrade reflects the moderation in the group's overall business risk profile marked by continued supressed return on capital employed (RoCE) levels and working capital intensity. Erstwhile levels of 6 plus percentage operating margins is not expected to materialise over the medium term on account of commodity nature of business and intense competition. It has remained at around 4-4.5% levels. Working capital intensity remains high with gross current asset (GCAs) at over 110 days. Subsequently the RoCE has remained subdued at 12% or thereabouts. The downgrade also takes into account the lack of moderation in overall leverage inspite monetisation of assets. Combination of debt and reliance on creditors has meant total outside liabilities to tangible net worth (TOL/TNW) ratio to remain aggressive at over 1.3 times, as against earlier expectations of close to 1 time.

The ratings continue to factor in the group's established market position and extensive experience of the promoter in the building material distribution and retailing businesses, the diversified product offerings, longstanding association with vendors, and average financial risk profile. These strengths are partially offset by susceptibility to economic cycles and sharp variation in raw material prices.

Shares of Shankara Building Products Ltd was last trading in BSE at Rs.244.55 as compared to the previous close of Rs. 257.4. The total number of shares traded during the day was 100799 in over 100 trades.

The stock hit an intraday high of Rs. 270 and intraday low of 244.55. The net turnover during the day was Rs. 24654422.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Seniority and RPG Life Sciences Launch SafeSeniors - India's First COVID-19 Risk Monitoring Tool for Senior Citizens

Paisalo Digital Ltd to consider various options for raising funds

Manali Petrochemical Ltd recommences production of Propylene Oxide

NLC India Ltd resumes mining operations at Neyveli

Music Broadcast Limited Ranks 4th, One of the 2020 Best Workplaces in Asia by Great Place to Work®

India Infrastructure Trust declares total distribution of Rs. 4.4357

Federal Bank Launches Various Covid-19 Relief Activities

Adani Gas reduces prices of CNG and Domestic PNG with effect from 09th April 2020

Astron Paper & Board Mill Ltd commences production in Unit-2 at Bhuj, Gujarat

West Coast Paper Mills Ltd restarts partial operations

STL grows its patent portfolio by 34% and increases global patent portfolio to 358 patents

DCM Shriram Limited updates on restart of production at Bharuch plant

CRISIL assigns ratings to Thermax Ltd

Snowman Logistics Ltd's warehouses are fully operational

L&T Hydrocarbon Engineering bags large contract from Indian Oil Corporation for 9 MMTPA Atmospheric & Vacuum Distillation Unit

SeQuent Scientific provides Covid-19 and Business Update

WABAG secures 5 Year Operation & Maintenance contract in Al Madina Al Shamaliya Sewage Treatment Plant in Kingdom of Bahrain

Zee Learn Ltd board approves appointment of CFO

Tata Steel Ltd board to consider issue of NCDs on Apr 13, 2020

ICRA revises credit ratings of VA Tech Wabag Ltd

Orient Paper & Industries Ltd restarts partial operations of plant

JM Financial Group commits Rs.30 crore towards COVID-19 relief measures

Brickwork assigns credit ratings to Ajanta Soya Limited

Chemfab Alkalis Ltd appoints Mr. S Prasath as CFO

Gujarat Alkalies and Chemicals Ltd announces partial operation of manufacturing facilities at Dahej and Vadodara Complexes

HUDCO updates on ratings by CARE, ICRA and Ind-Ra

Ind-Ra affirms long-term issue rating of Sudarshan Chemical Industries Limited

TamilNadu Petroproducts Ltd restarts plants

Wipro Ltd board to consider Q4, FY2019-20 results on April 15, 2020

Axis Bank mandated to collect funds for PM CARES Fund

IndiGo operates relief flights at own cost in the service of the nation

Adani Green Energy Limited (AGEL) consummates 2.148 GW joint venture with TOTAL, Receives INR 3,707 Cr

Timex Group in India receives SA 8000 certification, one of the world's first auditable social certification standards

Dabur Group earmarks Rs 21 Crores towards Support and Relief Activities

Granules India's Visakhapatnam facility received EU GMP approval

Cosmo Films Ltd resumes partial operations of plants at Maharashtra

Man Industries (India) Ltd's promoters purchase shares

HGS Offers Nurse Triage Services for Healthcare Companies to Support COVID-19 Patients During the Crisis

Royal Orchid & Regenta Hotels take up CSR Initiatives pan India to Alleviate Community Distress Amidst Covid-19 Pandemic

Zydus receives final approval from USFDA for Perphenazine Tablets USP

Knock Down the Lockdown with TCS iON Career Edge

Tata Power Solar receives the Letter of Award for CPSU-II from NTPC for 300 MW project

L&T Construction bags contract from Indian Army for its Smart World & Communication Business

JSW Steel Ltd - Crude Steel Production at 16.06 Million Tons for FY 2019-20

Tilaknagar Industries Ltd completes payment to Bank of India

Spandana Sphoorty Financial Ltd updates on key metrics for Q4 FY2019-20

IndusInd Bank announces QoQ drop in deposits

Polyplex Corporation Ltd board to consider buy back on April 9, 2020

Cyient Limited reappoints Mr. B V R Mohan Reddy as Executive Chairman

AU Small Finance Bank Limited updates on Q4 FY2019-20 performance

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019