Crisil Ratings stated that the ratings continue to reflect the longstanding presence of the promoters of SBCL in the bimetal industry, its leading market position due to presence in niche industry with negligible competition and strong financial risk profile.
These strengths are partially offset by moderate scale of operations.
The agency further said that a sustained growth in revenue growth of over 10% with steady operating margin leading of over 22% to higher-than-expected net cash accruals; and low dependence on debt leading to sustenance of strong financial risk profile could lead to a positive rating action.
However, a decline in operating income or operating margins below 17-18%, leading to lower cash accruals; and any large, debt-funded capex weakening the financial risk profile or liquidity could lead to a negative rating action.
Shivalik Bimetal Controls manufactures thermostatic bimetal/trimetal strips, components, shunt resistors and clad metals. Its units are in Chambaghat, Himachal Pradesh.
The company's consolidated net profit rose 21.60% to Rs 22.18 crore on a 8.88% increase in revenue to Rs 134.23 crore in Q3 FY26 as compared with Q3 FY25.
The scrip fell 1.98% to currently trade at Rs 415.50 on the BSE.