Mughal Iron & Steel Industries’ ongoing expansion projects to increase its market presence

News Image

MG News | December 19, 2018 at 01:00 PM GMT+05:00

0:00

December 19, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained entity ratings of Mughal Iron & Steel Industries Limited at ‘A-’ for long-term and ‘A2’ for short-term, with a positive outlook forecast.

The press release by PACRA suggests that the ratings take strength from strong brand value of Mughal Steel in the local industry. The company has attained formidable market share. Demand from retail segment is also earmarked by the management as future growth driver.

The ongoing expansion projects of 'Additional power capacity' and 'replacement of BMR mill' etc. will enable Mughal to increase its market presence, the report added.

Mughal unlike south players have to incur freight cost – that explains its differential in margins. The ratings incorporate Mughal’s adequate financial risk profile which has sustained over the years.

Going forward, owing to debt driven expansion, the leveraging is bound to increase; however expected to be comfortably managed through healthy cash flows.

The ratings are dependent upon the company’s ability to sustain its business profile amidst strong competition, herein, effective and prudent management of financial risk indicators remain important. Moreover, strengthening of governance framework is vital.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 138,412.25
167.69M
0.32%
447.43
ALLSHR 85,702.96
423.92M
0.15%
131.52
KSE30 42,254.84
82.09M
0.43%
180.24
KMI30 194,109.59
84.37M
0.15%
281.36
KMIALLSHR 56,713.67
217.03M
0.03%
16.37
BKTi 37,831.34
13.04M
1.62%
603.62
OGTi 27,440.63
3.93M
-0.09%
-23.70
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,465.00 118,480.00
117,905.00
845.00
0.72%
BRENT CRUDE 73.47 73.63
71.75
0.96
1.32%
RICHARDS BAY COAL MONTHLY 96.50 0.00
0.00
2.20
2.33%
ROTTERDAM COAL MONTHLY 104.50 104.50
104.50
-0.30
-0.29%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 70.30 70.33
70.18
0.30
0.43%
SUGAR #11 WORLD 16.46 16.58
16.37
-0.13
-0.78%

Chart of the Day


Latest News

Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg