 "Trident gains on credit rating upgrade")
Trident has rallied 6% to Rs 61.20 on BSE in intra-day trade, extending its Friday’s 6% gain, after rating agencies Credit Analysis & Research Ltd (CARE) and CRISIL upgraded the long-term and short term bank facilities of the company.
“The revision in ratings assigned to the bank facilities of Trident factors in the strong business performance reflected increasing profitability, healthy cash flows leading to adequate liquidity and improvement in its debts coverage parameters,” CARE said in a release. LINK
The upgrade reflects CRISIL's belief that Trident's business risk profile in the home textile business will improve over the medium term driven by rampup in utilisation of the towels and newly established bedlinen facility, as the risks associated with project implementation have now subsided.
CRISIL believes that the home textile business growth combined with steady contributions from the paper and yarn segments will lead to a healthy revenue growth of over 20% in fiscal 2017 and at 1015% per annum over the medium term. The benefits of increasing scale of operations, highly integrated manufacturing process in both home textiles and paper, and continued access to low-cost raw material for paper division will ensure healthy and sustained operating profitability at 1920% in the medium term. LINK
At 10:47 am, the stock was up 3.6% at Rs 59.65 on the BSE, as compared to 0.11% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 4.41 million shares changed hands on the counter on the BSE and NSE.
“The revision in ratings assigned to the bank facilities of Trident factors in the strong business performance reflected increasing profitability, healthy cash flows leading to adequate liquidity and improvement in its debts coverage parameters,” CARE said in a release. LINK
The upgrade reflects CRISIL's belief that Trident's business risk profile in the home textile business will improve over the medium term driven by rampup in utilisation of the towels and newly established bedlinen facility, as the risks associated with project implementation have now subsided.
CRISIL believes that the home textile business growth combined with steady contributions from the paper and yarn segments will lead to a healthy revenue growth of over 20% in fiscal 2017 and at 1015% per annum over the medium term. The benefits of increasing scale of operations, highly integrated manufacturing process in both home textiles and paper, and continued access to low-cost raw material for paper division will ensure healthy and sustained operating profitability at 1920% in the medium term. LINK
At 10:47 am, the stock was up 3.6% at Rs 59.65 on the BSE, as compared to 0.11% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 4.41 million shares changed hands on the counter on the BSE and NSE.
