PACRA Maintains Entity Ratings of Nishat Mills Limited : AsiaNet-Pakistan

PACRA Maintains Entity Ratings of Nishat Mills Limited

April 25, 2018 | General Business News | Share:

Lahore, April 25, 2018 (PPI-OT): The ratings reflect diversity of Nishat Mills underlying businesses, along with a conservative capital structure. This emanates from its implicit holdco structure within Nishat Group (NG), providing resilience to adversities in underlying sectors, particularly textile, while upholding the overall profile of Nishat Mills. Significant as well as diverse strategic investment portfolio of the company generates a regular and growing dividend stream in addition to a potential of capital appreciation.

Nishat Mills is one of the market leaders in textile industry, maintaining a sizeable, export-oriented composite unit in the country’s textile sector. Superior profile is characterized by requisite diversification, in terms of both geography and customer base. Despite key challenges being faced by the textile industry, it has maintained its performance indicators.

The management is focusing on capitalizing enhanced facilities in order to achieve overall cost efficiencies. The ratings are dependent on the company’s ability to sustained business margins and, hence, support profitability. Low leveraged capital structure provides room for expansion; should be managed prudently. Moreover, induction of independent members on board for better governance is considered important.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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Category: General Business News