ICRA assigns credit ratings to Jayant Agro Organics and its subsidiary

ICRA has assigned credit ratings to Jayant Agro-Organics Limited for Rs350cr (enhanced from Rs50cr) and its material unlisted Subsidiary Company viz. Ihsedu Agrochem Private Limited for Rs432cr (Jayant Agro Group).

[ICRA]A-/Stable and [ICRA]A2+ has been assigned to Jayant Agro Organics bank facilities.

[ICRA]A-/Stable and [ICRA]A2+ has been assigned to Ihsedu Agrochem bank facilities.

The ratings assigned to JAOL takes into account the extensive experience of the promoters of over five decades in the castor oil industry and the Jayant Group's leadership position in the castor oil and castor oil-based derivatives business.

The ratings also factor in the healthy net worth and comfortable capital structure of the Group at a consolidated level.

The Stable outlook reflects ICRA’s expectations that while the consolidated revenue for the Group would be impacted by the adverse impact of the Covid-19 pandemic in FY2021, the same should improve rapidly, mainly supported by its leadership position in the castor oil industry.

Jayant Agro Organics ended trading at Rs171.60 per piece down by Rs4.8 or 2.72% from its previous closing of Rs176.40 per piece on the BSE.