Khadim India shares extended their winning run to the fourth day in a row and jumped over 7 per cent in intra-day trade on Friday to hit a high of Rs 159 on the BSE following a change in the credit rating of the company by rating agency ICRA.
ICRA has revised long term credit rating on the company’s overall borrowings of Rs 204 crore to BBB- from BBB, although, it tweaked the outlook to ‘Stable’ from ‘Negative’. The short term rating on the company’s borrowings was revised to A3 from A3+ by ICRA, said the company in its BSE filing.
ICRA cited unfavourable domestic demand growth prospects due to the Covid-19 pandemic, increase in net loss in nine months of FY21 as compared to net loss in 9MFY20 and high working capital intensity of operations as the reasons behind the revision in the rating.
Following this development, the scrip opened 7.28 per cent above its previous close of Rs 148.20 on the BSE but soon pared gains and was trading only 1.21 per cent up at Rs 150 around 11.10 am. At the same time, the BSE barometer Sensex was down 0.04 per cent at 49,726.
Recently, on April 6, rating firm Crisil had assigned a rating of CRISIL BBB- with a ‘Stable’ outlook on the company’s long-term cash credit worth Rs 28 crore. At the same time, it had assigned CRISIL A3 on the short-term letter of credit of Rs 2 crore.
Shares of Khadim India have declined 25 per cent from its 52-week high of Rs 187 touched on March 2, 2021. On a year-to-date (YTD) basis, the stock has jumped 18 per cent as against a 4 per cent rise in the BSE Sensex.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.