CRISIL revises Paushak rating outlook to 'Positive', reaffirms rating; Stock jumps ~1%

2 Aug 2022 , 10:23 AM

Paushak Limited has informed that CRISIL Ratings has revised the company’s outlook on the long-term facilities to ‘Positive’ from ‘Stable’ while reaffirming the rating at ‘CRISIL A-’.

As per the rating rationale report, the revision in outlook reflects the strengthened business risk profile with scale-up in operation post completion of capital expansion for upstream and downstream capacities. 

The company continues to have moderate capex plans averaging Rs40-50 crore per annum over the medium term, which will be funded largely through internal accruals, thus building up its downstream capacities.

Accordingly, the rating continues to reflect the company’s established market position in the chemicals market and healthy financial risk profile also. These strengths are partially offset by the moderate scale of operation, the rating agency said.

At around 10:26 AM, Paushak was trading at Rs10,075 per share up by Rs90.45 or 0.91% from its previous closing of Rs9,984.55 per share on the BSE.