Triveni Engg hits new high

Triveni Engineering is in the news today morning after rating agency, ICRA, giving a ‘stable’ long term rating, reaffirmed its stance of its existing bank facilities & enhanced commercial paper limit of the company.

In its report, ICRA said that lower sugar volumes will be offset through higher revenues from its distillery unit. It said that higher sucrose diversion towards B-heavy molasses/juice-based ethanol would moderate the inventory levels and hence lower its working capital borrowing levels going forward, which is a positive.

ICRA expects that over the medium term, operating profit will be less volatile, driven by the expected continuation of MSP and the industry’s focus on diverting of excess cane towards ethanol production.

Following this report, the stock price, which had closed yesterday at Rs.253.60, opened slightly lower today at Rs.247.50 but soon recouped and went on to hit a new high at Rs.269.35.