As per the latest credit rating report by Ind Ratings some negatives which are worth taking note of
**Limited Scope of Expansion: SPRL is already a market leader in its operating segments and products, indicating limited scope for growth in its existing revenue streams. Ind-Ra believes that SPRL’s ability to develop new revenue streams, either through new products or new geographies, will be important to strengthen its business profile.
The agency believes that an increase in the penetration of EVs could affect the company’s credit profile. To mitigate this risk, SPRL is trying to foray into EV components and is looking at inorganic route for the same.
SPRL’s plants are operating at about 80% capacity.
The above points and further exit of their long time technology collbrator namely, KS Kolbenschmidt GmbH,Germany, provides strong detterent of not investing in SPRL atleast for next few quaters.
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