Credit rating agency, Credit Analysis & Research (CARE), has revised the credit rating for long term bank facilities of IOL Chemicals and Pharmaceuticals (IOLCP), a small-cap pharma company.
The rating has been revised from CARE BB- to CARE BB (stable). It has also reaffirmed the credit rating for short term bank facilities, to CARE A4.
IOLCP has posted a revenue and net profit growth of 6.5% and 34.2%, respectively, in its Q2 FY17 results.
Company has reported a revenue growth of 50.8% in FY16. Moreover, company also has posted a recovery in net loss from Rs 66.65 crore in FY15 to Rs 40.03 crore loss in FY16.
The stock of IOLCP is trading at Rs 97.50 with 0.4% intraday gains. It has witnessed a stock price recovery from 90 levels since December 27, 2016, but is sustaining in a negative trend, which started at the end of September 2016. IOLCP is required to break out of 102 levels on a closing basis to enter into the positive trajectory.