52-week high alert: Pricol Limited rallies as CRISIL upgrades credit rating

During Friday’s trading session, the shares of Pricol Limited zoomed by 1.84%. Additionally, the stock hit a fresh 52-week high mark of Rs 388.20 apiece on BSE. The company’s current market capitalisation is Rs 4,597.98 crore.

Recent development 

CRISIL upgraded the long-term rating of the agency facility worth Rs 145 crore. The rating was revised from CRISIL A-/Stable to CRISIL A/Stable.

Positive Impacts for Investors

One of the primary outcomes is increased investor confidence, driven by the perception of improved financial stability and creditworthiness.

Positive Impacts for Share Prices

In the equity market, positive investor sentiment is a key catalyst. The upgrade triggers optimism, driving increased demand for shares and contributing to upward share price movements. Additionally, the improved market perception of the company enhances its visibility, potentially attracting further investment.

However, the impact is not always immediate: 

It’s important to note that the impact of a credit rating upgrade on share prices may not be immediate. External factors such as overall market conditions and company-specific dynamics also play a role in shaping the outcomes.

Additionally, the degree of impact can vary based on the existing investor base and its responsiveness to credit rating changes.

Company profile 

Established in 1974, Pricol Limited operates in the manufacturing and sale of instrument clusters and various allied automobile components catering to Original Equipment Manufacturers (OEMs) and replacement markets. The company, headquartered in Coimbatore, Tamil Nadu, has carved its niche in the automotive industry with a focus on delivering quality products to meet the demands of both OEMs and the replacement market.

Product wise break-up 

Pricol Limited strategically distributes its product portfolio across key automotive components. Dashboard Instruments & Accessories lead with 49.29%, followed by Oil Pumps at 30.78%, and Chain Tensioners at 8.44%. Despite no current value, the Distribution of Automotive Spare Parts underscores Pricol’s role in aftermarket support.

The remaining 11.49% in Others showcases a comprehensive approach to meet diverse automotive needs. This breakdown highlights Pricol’s strategic positioning and commitment to offering comprehensive solutions across automotive segments.

Furthermore, the stock has witnessed significant buying activity as it has given returns of more than 225% in the last 2 years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.