CRISIL has upgraded its rating on the commercial paper programme of V-Guard Industries to 'A1+' from 'A1'. The rating upgrade reflects CRISIL's belief that V-Guard will sustain the steady growth in its business over the medium term, supported by improving contributions from its diverse product segments, increased penetration into new markets, and its established brand and network. Besides, the company's financial risk profile and liquidity are expected to remain healthy over this period, supported by steady cash generation from operations, moderate capital expenditure (capex), and prudent working capital management.

CRISIL believes that V-Guard's business risk profile will benefit over the medium term, driven by the company's focus on consolidating its position in newer products and markets entered in recent years, and by the healthy growth prospects for the segments in which it operates. Stabilisers (where V-Guard is the market leader) and poly vinyl chloride (PVC) wires are expected to remain the company's mainstay products, registering steady growth over the medium term.

However, new products introduced in the recent past'low-tension (LT) power cables, digital uninterruptible power supply (UPS) systems, fans, kitchen appliances, water heaters, and switchgears'are expected to augment the company's growth prospects, besides enhancing its revenue diversity, over this period.

Shares of the company gained Rs 35.65, or 3.35%, to trade at  Rs 1,099.45.  The total volume of shares traded  was  1,531 at the BSE (12.18 p.m., Wednesday).