March 26, 2019 (MLN): Pakistan Credit Rating Agency has maintained entity ratings of Mughal Steels Limited at ‘A-’ for long-term and ‘A2’ for short-term, with a ‘positive’ outlook assigned to the company.
The Company’s profiling has significantly improved post listing on PSX, few years back. Governance framework strengthened by induction of independent oversight on board.
The Company has diversity in its product slate; Rebars, T-Iron and Girders etc. Furthermore, establishment of strong brands like ‘Mughal Supreme’ gives competitive edge to the Company’s products.
The company has attained formidable market share by penetrating retail segment. The strategic realignment executed over the last few years by channeling 60% volumes (previous: 10% of sales mix) to retail market has been fruitful. The capacity expansion project (planned COD: Jun-19) will further enable Mughal to increase its efficiency and market presence.
The established distribution network and knowledge of management on supply chain dynamics is a positive contribution to Mughal. Going forward, management is eying backward integration.
