CareEdge Ratings reaffirms ratings of Tarsons Products with 'stable' outlook

The agency has also affirmed the company?s short-term rating at ?CARE A1?.

CareEdge Ratings stated that the reaffirmation of ratings assigned to bank facilities of Tarsons Products (TPL) considers improvement in scale of operation in FY25 with recovery in operating margin in H2FY25.

The margin exhibited recovery from 25.5% in Q2 FY25 to 30.98% and 32.86% in Q3 FY25 and Q4 FY25, respectively.

Ratings further consider comfortable capital structure and debt protection metrics despite slight moderation considering ongoing capex.

Ratings continue to derive strength from the long track record and established brand presence of TPL in the domestic plastic laboratory ware industry aided by its diversified product portfolio, strong distribution network, and low exposure to foreign exchange fluctuation risk.

The ratings continue to remain constrained by the modest scale of operations albeit expected improvement on back of acquisition and undergoing capex, which is expected to complete in FY26, susceptibility of its profitability to volatility in raw material prices, elongated working capital cycle and project implementation, and stabilisation risk in relation to the undergoing capex.

Tarsons Products (TPL) is engaged in manufacturing and trading plastic laboratory products and certain scientific instruments, with six manufacturing facilities in West Bengal. The products find usage in laboratories engaged in research on molecular biology, cell culture, genomics, proteomics, and immunology, among others.

The scrip rose 0.23% to currently trade at Rs 372.35 on the BSE.

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