Elgi Rubber Company Limited has informed the Exchange about Credit Rating- Downward Revision
ELGIRUBCO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 1.1 pts less than Nifty Microcap 250 and 0.3 pts less than its Rubber peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Elgi Rubber Company Limited's credit rating has been downgraded by Infomerics Valuation and Rating Limited across all facilities, totalling Rs. 276.77 crore. Long-term bank facilities (Rs. 140.02 crore) and fixed deposits (Rs. 12 crore) were cut from IVR BB+/Negative to IVR BB/Negative, while short-term bank facilities (Rs. 124.75 crore) dropped from IVR A4+ to IVR A4. All ratings remain in the 'Issuer Not Cooperating' category because the company did not provide adequate information for review. The downgrade follows a sharp deterioration in FY25 financial performance, with the company swinging from a Rs. 17.93 crore profit in FY24 to a Rs. 4.26 crore loss in FY25. The company, however, claims its operations are normal and its financial position remains healthy.
The downgrade to BB (a non-investment grade rating) with a negative outlook signals heightened credit risk and may lead to higher borrowing costs or tighter lending terms for the company. Shareholders should be cautious as the 'Issuer Not Cooperating' tag and the FY25 loss raise concerns about transparency and financial health, which could weigh on the stock in the near term.