CRISIL Ratings has upgraded its ratings on Pudumjee Paper Products Limited (PPPL) bank loan facilities to ‘CRISIL A/Stable/CRISIL A1’ from ‘CRISIL A-/Positive/CRISIL A2+’.
CRISIL Ratings also migrated its rating on PPPL’s fixed deposit program from “FA/Positive” to “CRISIL A-/Positive”, then simultaneously upgraded to “CRISIL A/Stable” from “CRISIL A- /Positive”.
According to the rating rationale report, the upgrade reflects a sustained improvement in the business’s risk profile supported by the recovery in demand and increased achievements in FY22 and continued growth. improved operating margin in FY22.
The migration of the FD program rating follows the revision of CRISIL Ratings’ rating scale for fixed deposit (FD) programs, which is now aligned with the 20-point long-term scale standardized by SEBI.
The ratings reflect PPPL’s established market position in the specialty papers segment, supported by the promoters’ extensive experience and broad product portfolio.
The rating also takes into account its sound financial risk profile. These strengths are partly offset by the exposure to intense competition in the paper industry and the sensitivity of profitability to the volatility of raw material prices.
At around 11:48 a.m., Pudumjee Paper Products was trading at 36.35 rupees per share, up 3.41% on BSE.