CARE reaffirms IOL Chemicals’ long-term rating to A+; stock plunges ~8%

4 Jul 2023 , 01:23 PM

IOL Chemicals and Pharmaceuticals Ltd informed that CARE reaffirmed the company’s long-term rating to A+. The outlook is Stable.

Moreover, the short-term rating of the company has been reaffirmed at A1+, reflecting its robust operational and financial performance.

However, despite a positive development, the company’s counter fell as much as 8% in Tuesday’s trading session.

At around 1.16 PM, IOL Chemicals was trading 7.81% lower at Rs 374.10, against the previous close of Rs 405.80 on NSE. The counter slipped to an intraday low of Rs 369.05.

The company’s consistent track record of delivering high-quality products, as well as its commitment to maintaining strong financial stability, is highlighted by CARE’s reaffirmation of IOL’s ratings. The ‘A+’ rating reflects IOL’s strong business model, diverse product portfolio, and market position in both the specialty chemicals and pharmaceutical industries, said the company on Tuesday.

IOL’s bank loan facilities, non-convertible debentures, market-linked debentures, and subordinated debt all have an ‘A+’ rating with a stable outlook, demonstrating credit rating agencies’ confidence in the company’s financial strength and stability.

IOL Chemicals and Pharmaceuticals logged consolidated revenue of Rs 2,243 crore in FY23, reflecting company’s strong performance for the year. The company has stabilized its operations in both the pharmaceutical and specialty chemicals segments, with a focus on cost reduction and margin expansion.

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