The agency has also upgraded the company’s short-term rating to 'ACUITE A3+’ from ‘ACUITE A3’.

Acuité Ratings & Research stated that the rating upgrade factors in the group’s stable business risk profile which is expected to strengthen further with augmentation in capacity utilisations and addition of new capacities facilitating diversification in product mix.

The rating also factors in group’s sustained healthy financial risk profile, supported by a strong net worth base, low gearing and comfortable debt protection metrics. The rating also reflects the group’s long standing operational track record and experienced management.

However, the rating remains constrained by the group’s working capital-intensive operations and susceptibility of profitability to volatility in raw material prices in a highly competitive and fragmented industry.

Permanent Magnets (PML) is engaged in manufacturing of Alnico (aluminium, nickel and cobalt) magnets & magnetic assemblies, parts and accessories of electricity meters, gas meters and electrical vehicles.

The scrip rose 0.54% to currently trade at Rs 840.55 on the BSE.