LT Foods shares gain over 4% after CRISIL reaffirms long-term rating on loans
The outlook on the long term bank loan facilities has been revised to Stable by CRISIL.
March 26, 2020 / 11:36 AM IST
Shares of rice maker LT Foods rallied 4.5 percent intraday on March 26 after CRISIL reaffirmed long term rating on the company's bank loan facilities.
"CRISIL has reaffirmed the long term rating at A- and the short term rating at A2+," company said in its BSE filing.
The outlook on the long term bank loan facilities has been revised to Stable, it added.
CRISIL in its note said the ratings continued to reflect the LT group's strong market position in the basmati rice industry, resulting in sales growth and stable profitability.
The ratings also factored in the group's diversified geographical reach through strong brands, (Daawat in the domestic market, and Royal in the US market), an established marketing network, and improving financial risk profile," it added.
"These strengths are partially offset by the working capital requirements, and susceptibility to volatile raw material prices, and any adverse changes in government policies," the rating agency said.
The stock was trading at Rs 15.95, up Rs 0.35 or 2.24 percent on the BSE at 11:19 hours.