Amid the rating upgrade, the shares of Nitin Spinners touched a new record high of Rs 183.80 per share after surging almost 12 per cent on the BSE intraday trade on Friday. The scrip grew to near 18 per cent in the past three days since CARE rating upgraded long-term bank facilities to stable from negative.

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Almost at market close today, the counter was trading near 10 per cent higher at Rs 180.65 per share amid a two-fold jump in trading volumes. A combined around 2.1 million shares have changed hands on the NSE and BSE. The stock of textiles company zoomed 126 per cent in the last three months.

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CARE Rating said, "The ratings assigned to the bank facilities of Nitin Spinners (NSL)take into account the significant experience of its promoters in the textile industry, NSL being a well-recognized entity with a long track record of operations in the industry and a diversified product profile.” 

The rating also factors in the company’s increasing scale of operations with healthy profitability margins, its reputed customers, low customer concentration risk and its integrated manufacturing facility with captive thermal and solar power plants, the rating agency said in a statement.

"The ratings, however, remain constrained by the company’s moderately leveraged capital structure partially offset by subsidized interest rates and its susceptibility to volatility in raw material prices and foreign exchange fluctuations. Ratings are further constrained by the highly fragmented nature of the textile industry coupled with intense competition," the rating agency added.

The small-cap textile company is engaged in manufacturing of varieties of cotton yarn knitted fabrics, and finished woven fabrics. Yarn accounts for the majority of the revenue generated by the company through count ranging from 6 to 100s, registering around 68 per cent of the sales in FY21.