Khadim India rises for fourth day, jumps 7% on credit rating tweak

Shares of Khadim India have declined 25 per cent from its 52-week high of Rs 187 touched on March 2, 2021
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.



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