CARE Ratings upgrades credit rating of Faze Three Limited

CARE Ratings has upgraded the credit rating of Faze Three Limited on the Long Term Bank Facilities to 'CARE A-' (Single A Minus) Outlook: Stable for the facilities of INR 87.00 Crores. The Short Term rating has also been upgraded to 'CARE A2+' (A Two Plus).

The revision in the rating assigned to Faze Three Limited (FTL) factors in improvement in scale of operations despite weak Q1FY21 (growth in Revenue of 6.50% over FY20), PBILDT margins of 15.27% in FY21 (PY: 12.68%) resulting into better PAT for the company. CARE believes that the company will continue to benefit from the demand shifting from China to India for textile products from American and European markets, which have resulted into improved visibility of sales in the coming years. The ratings continues to derive strength from the company's experience in manufacturing home furnishing products, integrated nature of operations, diversified product mix/customer base , growth in operations, improvement in PBILDT margins in over the years, comfortable capital structure and debt protection metrics. The ratings are however constrained by long operating cycle, geographical concentration of revenue (USA and UK markets), ability to manage / pass on fluctuations in raw material prices & Foreign Exchange rates and continuity of Government policies on Export benefits.

Shares of Faze Three Ltd. was last trading in BSE at Rs. 172 as compared to the previous close of Rs. 162.6. The total number of shares traded during the day was 27355 in over 199 trades.

The stock hit an intraday high of Rs. 172 and intraday low of 155. The net turnover during the day was Rs. 4576305.

Source : Equity Bulls

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