Acuite upgrades credit rating of Bal Pharma's debt instruments

22 Feb 2022 , 12:44 PM

Credit Rating Agency Acuite Limited upgrades the credit rating assigned to the Long term fund-based facilities, short term non-fund based facilities, and long-term loans of Bal Pharma Limited.

Acuite has assigned ACUITE BBB- rating to the company’s Long-term Fund based facilities against existing ICRA BB+, giving a stable outlook to the instruments.

The company’s Short term Non-fund based facilities were assigned ACUITE A3 from earlier ICRA A4+. Whereas its long-term loans were also assigned ACUITE BBB- stable from existing ICRA BB+ positive.

The credit rating agency has considered the company’s sound business profile, average financial risk profile, and improvement in scale of operation and profitability margin to improve its credit rating.

Company witnessed a significant improve in its financial performance over the last year. The financial risk profile of the group is marked by moderate net worth, high gearing and comfortable debt protection metrics. Bal Pharma Ltd (BAL) has three business segments namely API, formulation and Ayurveda with 52%,47% and 1% contribution to revenue. Moreover the group has a diversified product profile that includes 200 generic formulations in 20 different therapeutic segments and 150 APIs.

Bal Pharma is currently trading at Rs101.65 down by Rs2.85 or 2.73% from its previous closing of Rs104.50 on the BSE. The scrip opened at Rs95.50 and has touched an intraday high and low of Rs102.75 and Rs95.50 respectively.