CARE Downgrades Vishnu Prakash R Punglia’s Long-Term Rating on Working Capital Strain

An update from Vishnu Prakash R Punglia Ltd. ( (IN:VPRPL) ) is now available.

Vishnu Prakash R Punglia Limited has had its long-term credit rating downgraded by CARE Ratings to CARE BBB- with a Stable outlook from CARE BBB with a Negative outlook, while the short-term rating of CARE A3 has been reaffirmed, affecting bank facilities totaling ₹960 crore. The downgrade reflects continued high working capital intensity caused by delayed work certifications and payments in key water supply projects, along with concerns over significant promoter stake dilution and share pledging, even though those proceeds have been infused back into the company as interest-free unsecured loans to support operations, reduce external debt and bolster liquidity; despite these pressures, the Stable outlook is underpinned by a healthy, diversified order book, ongoing promoter support, and expectations of sustained scale of operations, while the ratings remain constrained by the competitive, tender-driven nature of the construction industry and execution risks in slow-moving or early-stage projects.

More about Vishnu Prakash R Punglia Ltd.

Vishnu Prakash R Punglia Limited is an ISO 9001:2015-certified engineering, contracting and design company operating in the infrastructure construction sector, with a strong presence in water supply projects. The firm maintains a moderately scaled operation supported by a geographically and segmentally diversified order book, benefits from experienced promoters and a solid execution track record in government-backed water supply schemes, and operates with a moderate capital structure and debt coverage indicators after recent promoter fund infusions and external debt reduction.

Average Trading Volume: 183,094

Technical Sentiment Signal: Sell

Current Market Cap: 5.77B INR

For an in-depth examination of VPRPL stock, go to TipRanks’ Overview page.