Ind Ra confirms the credit rating of Cavendish Industries, a subsidiary of JK Tire; Stocks are trading flat

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India Ratings and Research Pvt. (Ind-Ra) affirmed the long-term issuer rating at ‘IND A-‘ and revised the outlook to Negative from Stable of Cavendish Industries Limited (CIL), a subsidiary of JK Tire & Industries Limited (JKTIL)

Long-term loan ratings were affirmed at IND A- where the outlook was revised from stable to negative. Additionally, the short-term rating was confirmed at IND A2+.

According to the Rating Rationale Report, Ind-Ra continues to have a consolidated view of JKTIL and its subsidiaries to arrive at the ratings, due to the strong operational and strategic ties between them, driven by similar business profiles and a common cash flow and management. crew.

In addition, the revised outlook reflects Ind-Ra’s expectation that consolidated net debt will remain elevated in FY23, due to challenges related to EBITDA margin improvement, needs in additional working capital and debt-financed investment plans.

Any decrease in the company’s profitability or increase in the working capital requirement, driven by the volatility of raw material prices, could lead to a deterioration in net debt.

At around 11:13 a.m., JK Tire & Industries was trading at 102.10 rupees per share on BSE.

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