Bedmutha Industries Limited updates on rating

Acuite has assigned its long term rating of ACUITE BBB- (read as ACUITE triple B minus) and short term rating of ACUITE A3 (read as ACUITE A three) to Rs. 259.29 Cr of bank loan facilities of Bedmutha Industries Ltd (BIL). The outlook is 'Stable'.

Rationale for rating assigned

The rating assigned takes into consideration the established market position of the company in the wire ropes industry. The rating draws comfort from BIL's improved operating performance in FY2022 post the implementation of debt restructuring resolution plan in FY2021, moderate working capital operations and adequate liquidity position. The rating further factors in the unconditional support of Rs. 15 crores for debt servicing and working capital requirements offered by Badve Group till FY2024 and 18% shareholding of Badve Group through K-Fx Services Pvt Ltd in BIL. However, these strengths of the company are partially offset by the average financial risk profile, low capacity utilisation and highly fragmented and competitive industry.

Shares of Bedmutha Industries Limited was last trading in BSE at Rs. 69.45 as compared to the previous close of Rs. 71.95. The total number of shares traded during the day was 9827 in over 102 trades.

The stock hit an intraday high of Rs. 71.05 and intraday low of 67.10. The net turnover during the day was Rs. 668691.00.

Source : Equity Bulls

Keywords

BedmuthaIndustries INE844K01012 RatingUpdate