CRISIL reaffirms credit rating of Albert David's bank facilities; stock slips ~2%

2 May 2022 , 11:07 AM

Albert David Limited, a rapidly-growing pharma giant in India, has announced that CRISIL Ratings Limited has reviewed the debt instruments of the company.

CRISIL has reaffirmed the ratings assigned to the company’s debt instruments worth Rs18.50 crore.

The rating agency has reaffirmed the long-term rating for cash-credit worth Rs10 crore at ‘CRISIL A-‘ and has given a Stable outlook for the same. While short-term issuer ratings worth Rs8.50 crore are reaffirmed at ‘CRISIL A1’.

Also, CRISIL Ratings has withdrawn its rating on Rs51.5 crore of the proposed long-term bank loan facility at the company's request. This is in line with the CRISIL Ratings policy on the withdrawal of bank loan ratings.

The ratings continue to reflect the adequate financial risk profile with ample liquidity, backed by steady accretion to reserve and no major debt-funded capital expenditure (CAPEX) plan. The ratings also factor in the sound marketing and distribution network. These strengths are partially offset by a limited product profile, exposure to intense competition, and susceptibility to regulatory changes.

Albert David is currently trading at Rs603 down by Rs14.85 or 2.4% from its previous closing of Rs617.85 on the BSE. The scrip opened at Rs608.65 and has touched day's high and low of Rs611 and Rs600.10 respectively so far.