CRISIL has assigned its ?BB-/Stable/P4+? ratings to the bank facilities of Kamdhenu Commercial (India) Pvt Ltd (KCPL). The ratings reflect KCPL?s below-average financial risk profile, marked by a small net worth and weak debt protection metrics, exposure to intense competition in the edible oils industry, and short track record of operations. These rating weaknesses are partially offset by the extensive industry experience of KCPL?s promoters.

Outlook: Stable

CRISIL believes that KCPL will continue to benefit from the extensive industry experience of its promoters, over the medium term. The outlook may be revised to ?Positive? if the company?s financial risk profile improves substantially, most likely because of an improvement in capital structure and sustainable increase in revenues and profitability. Conversely, the outlook may be revised to ?Negative? if KCPL undertakes a larger-than-expected, debt-funded capital expenditure programme, or reports a decline in its margins and revenues.