India Ratings & Research (Ind-Ra) has upgraded Uflex long-term issuer rating to 'A-' from 'BBB+'. The outlook is stable. The agency has also affirmed Uflex's short-term bank loan rating.

The upgrade reflects the pick-up in realisations of Uflex's core plastic films business in 9MFY15 (nine months ended December 2014), led by an improvement in the pricing of plastic films. Also, it has achieved greater stability in consolidated EBITDA margin than peers, led by a favourable product mix with presence in more stable and higher-value added flexible packaging. The per unit (per kg) realisations in plastic films improved to Rs 20-Rs 21 in 9MFY15 compared with Rs 12-Rs 13 in FY14. Uflex expects to nullify the inventory gains/losses arising from a time lag in passing on input price changes to customers in due course due to a limited raw material inventory period.

Shares of the company gained Rs 2.3, or 2.01%, to settle at Rs 116.95. The total volume of shares traded was 67,827 at the BSE (Tuesday).