CARE reaffirms ratings of Digjam’s bank facilities

26 Jun 2014

Credit rating agency, CARE has reaffirmed ‘B’ rating to Rs 27.97 crore long term bank facilities of Digjam. The rating agency has also reaffirmed ‘A4’ rating to Rs 54.50 crore short term bank facilities of the company.

The ratings continue to be constrained by the modest scale of operations of the company, its thin profitability, high leverage and working capital intensive operations. The ratings are further constrained by its presence in the highly competitive worsted fabric segment and susceptibility of its margins to foreign currency exchange rate fluctuation. 

Digjam is primarily engaged in manufacturing worsted fabrics at its sole manufacturing facility in Jamnagar, Gujarat. It sells its fabric under the ‘Digjam’ brand through its established marketing network consisting of approximately 1250 retailers, 55 wholesalers and 26 exclusive retail outlets spread across India. 

Related Digjam Ltd. - (Amalgamation) Links:

Digjam (Amalgamated) Share Price

12.69 0.00 (0.00%) Mar 29, 17:59
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Company Name CMP
Raymond 691.40
Siyaram Silk Mills 229.10
Aarvee Denims & Exp. 13.48
KG Denim 24.55
BSL 30.45
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Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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