The rating on Ballarpur Industries Ltd. (BILT) reflects the company's "aggressive" financial risk profile and its exposure to volatility in pulp and paper prices and intense competition. BILT's strong domestic market position in India and its favorable growth prospects in India and Malaysia partly offset these weaknesses. BILT is an India-based pulp and paper manufacturer. We assess the company's business risk profile as "fair." We expect BILT's high debt to restrict any significant improvement in key ratios. We estimate that the company's EBITDA will average between Indian rupee (INR) 10 billion and INR12 billion a year over the next three years, with a healthy growth in revenue. We expect the company's ratio of debt to total capital to be at...
Companies mentioned in this report are:
- Ballarpur Industries Ltd.
- Ballarpur International Graphic Paper Holdings B.V.
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