Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Birla Cable Limited ( (IN:BIRLACABLE) ) has provided an update.
CARE Ratings has reaffirmed Birla Cable Limited’s rating at CARE BBB+ and CARE A2 for long-term bank facilities of ₹55 crore, placing them on Rating Watch with Positive Implications, underscoring stable standalone credit quality. However, ratings backed by a corporate guarantee from group company Vindhya Telelinks Limited have been downgraded to CARE A (CE) for ₹120 crore of long-term facilities and CARE A1 (CE) for ₹176 crore of short-term facilities, both on Rating Watch with Developing Implications.
The rating actions reflect pressure on Vindhya Telelinks’ credit profile due to weaker-than-expected profitability, execution delays in its EPC business, higher receivables, and rising debt, even as its order book remains strong and group support from the MP Birla Group is a key mitigant. The ratings also factor in the pending amalgamation of Birla Cable into Vindhya Telelinks, expected to complete over the next 10–12 months, which aims to streamline operations and improve efficiency but introduces interim uncertainty for lenders and investors regarding the merged entity’s leverage and coverage metrics.
More about Birla Cable Limited
Birla Cable Limited is a manufacturer of cables and related telecom infrastructure products, operating within the MP Birla Group’s wider communications and engineering ecosystem. Its operations are closely linked with Vindhya Telelinks Limited, which provides corporate guarantees for a significant portion of Birla Cable’s bank facilities and supports its position in the telecom and specialty cable markets.
Average Trading Volume: 4,562
Technical Sentiment Signal: Sell
Current Market Cap: 3.13B INR
For an in-depth examination of BIRLACABLE stock, go to TipRanks’ Overview page.