Sigachi Industries stock gains 8% after CARE upgrades debt rating

Shares of Sigachi Industries rose 8% today after CARE raised credit rating on the company's long-term bank facilities of Rs 13.93 crore to 'A-' from 'BBB'. The outlook, too, has been revised to "stable" from "positive".

The stock opened with a gain of 3.2% at Rs 310 against the previous close of Rs 300.40 on BSE.

The share touched an intraday high of Rs 324.25, gaining 7.94% on BSE. The share stands lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  It ended 4.39% higher at Rs 313.60 on BSE today.

The stock has lost 21.33% in one year and fallen 14.39% since the beginning of this year. Total 0.22 lakh shares of the firm changed hands, amounting to a turnover of Rs 69.31 lakh on BSE. Market cap of the firm rose to Rs 964.08 crore.

CARE has rated 'A-' and 'A2' the long-term and short-term bank facilities worth Rs 13.93 crore from A3+.

"On the basis of recent developments, including operational and financial performance of the company for FY21 (audited) and 9MFY22 (unaudited), the rating committee has reviewed the ratings," the leading excipient manufacturer and exporter said in a BSE filing.

Long-term and short-term bank facilities worth Rs 13.35 crore, too, have been upgraded to 'A-' and 'A2' from 'BBB'.

In the December quarter, the firm reported a 36% rise in net profit to Rs 9.30 crore against  Rs 6.84 crore profit in the corresponding quarter of the previous fiscal. Sales rose 38.83% to Rs 66.50 crore in the last quarter against Rs 47.90 crore in the December quarter of 2020.

Operating profit climbed 44.04% to Rs 12.20 crore for the quarter ended December against Rs 8.47 crore in the corresponding quarter of the previous fiscal.

On a quarter-on-quarter basis, the firm reported a 1.48% fall in net profit from Rs 9.44 crore in the September 2021 quarter. However, sales rose 14.16% from Rs 58.25 crore in Q2 of the current fiscal.

Sigachi Industries is engaged in the business of pharma excipients, nutra and food ingredients. Sigachi was incorporated in 1989 and is one of the largest manufacturers of microcrystalline cellulose worldwide.