Acuite downgrades ratings of Kanpur Plastipack Limited

Acuité has downgraded its long-term rating to Acuité BBB+' (read as Acuité triple B plus) from Acuité A-' (read as Acuité A minus) and its short-term rating to Acuité A2 (read as Acuité A two) from Acuité A2+ (read as Acuité A two plus) on the Rs. 366.56 crore bank facilities of Kanpur Plastipack Limited (KPL). The outlook remains 'stable'.

The rating downgrade reflects the sharp decline in the operating performance of the company in FY23, which stood at Rs. 476.85 crore against Rs. 626.77 crore in FY22. Further, the downgrade in rating factors in the significant decline in operating margins of the company, which have declined to 5.51% in FY 2023 as against 9.71% in FY 2022. The rating also factors in the stretched liquidity profile as net cash accruals generated in FY 2023 are not sufficient to repay the debt obligations during the same period. However, the rating continues to positively factor in the established track record of operating and moderate financial risk profiles of the company, marked by low gearing and moderate net worth.

Shares of Kanpur Plastipack Limited was last trading in BSE at Rs. 96.00 as compared to the previous close of Rs. 95.44. The total number of shares traded during the day was 2660 in over 64 trades.

The stock hit an intraday high of Rs. 96.10 and intraday low of 95.00. The net turnover during the day was Rs. 254671.00.

Source : Equity Bulls

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KanpurPlastipack INE694E01014 RatingUpdate Downgrade