Credit rating agency, CARE has reaffirmed the assigned ‘A1+’ rating to the Commercial Paper (CP) Programme carved out of working capital limits of Jain Irrigation Systems (JISL) for Rs 300.00 crore. The company’s ability to manage its working capital cycle amidst expansion in its operations and to manage the volatility in its raw material prices remain the key rating sensitivities.
The long-term rating is, however, constrained by JISL’s dependence on the agriculture sector, the volatility in the prices of its crude oil-linked raw materials, its moderate gearing levels and the company’s aggressive debt-led growth plans in the medium term.
Jain Irrigation is a diversified company with a market capitalization of Rs 7,500 crore approx. Jain’s product portfolio includes Irrigation Products, Piping Products, Plastic Sheets, Dehydrated Foods, Fruit Puree and Juice concentrates. It also has a growing presence in the renewable energy segment and is the largest player in applications of solar energy in agriculture and rural areas.
| Company Name | CMP |
|---|---|
| Supreme Industries | 3705.80 |
| Astral | 1612.85 |
| Finolex Inds | 174.70 |
| Nilkamal | 1320.05 |
| Jain Irrigation Sys | 33.05 |
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