The credit rating agency also upgraded the long-term Term Loan of the company to ICRA BB+; Stable from ICRA BB; Stable.
The company stock was in demand on Wednesday and towards end of the trade, it was trading at Rs106.45 per piece up by Rs8.35 or 8.51% from its previous closing of Rs98.10 per piece on the BSE. The scrip opened at Rs102.80 and has touched a high and low of Rs107.90 and Rs102.40 respectively.
The credit rating agency has considered the following material event’s for up-gradation of the credit rating, the company said.
Established position as a leading manufacturer of API for anti diabetic drug i.e Gliclazide and diversified customer base in API and formulations segments.
Improvement in revenue and profitability for FY21 and Q1FY22.
Expected further equity infusion by the promoters during F.Y 2022.
Higher working capital intensity, intense competition in domestic and exports markets for API’s, moderate capitalization and coverage indicators, import dependance on China for raw materials for manufacture of Gliclazide are some of the credit challenges highlighted by the rating agency.