BAL Pharma Limited's Credit Rating upgraded by Acuite Ratings & Research

BAL Pharma, a fully integrated pharmaceutical company specialized in Bulk Actives, Prescription Drugs, Generics and pharma intermediates, has announced that the leading credit rating agency, Acuite Ratings & Research has upgraded its ratings. The ratings for Long Term Fund based facilities and Long term-Term Loan facilities have been upgraded to 'BBB- from BB+' indicating 'Stable' outlook, for the Company.

Improved Business Performance

The rating from BB+(ICRA) to BBB- has been improved based on the sound business performance of the Company. It is enhancing its business segments and maintaining strong momentum, especially the API's business, which has been driving the overall growth. Bal Pharma registered 16% YoY revenue growth for 9MFY22. This was on account of the robust demand both in the domestic and the international markets. Various APIs such as Gliclazide, Ebastine, and Benzydamine have witnessed strong growth momentum. The Company has also introduced 10+ new Formulation products in Asia and Africa, which will further diversify its geographical presence. Further, Bal Pharma has been continuously focussing on improving its International and Domestic market share in API and Formulation. To scale up the operations, the Company has been planning to incur CAPEX for expanding the facilities, which will now coincide with the PLI Scheme.

PLI Scheme: a shot-in-the-arm for Future growth

The Company is also a beneficiary of the Production Linked Incentive (PLI) scheme 2.0. for the Pharmaceutical Sector under "Atmanirbhar Bharat". It has been placed under 'Category C' of the said scheme wherein Bal Pharma is eligible for incentives to the tune of INR 500 mn spread over the next 5 years with an incremental annual average turnover of INR 1,250 mn from eligible products in both API and Formulation segments. This target of incremental turnover coincides with the Company's growth plans with no additional capex (over and above the capex planned), such incentives are expected to directly flow into the Company's profits.

Commenting on the rating, Mr. Shailesh Siroya, Managing Director, BAL Pharma said, "The rating upgrade by the Acuite rating and Research is an indication of Bal Pharma's improved performance. The upgradation reflects that we have a sound profile and capacity to outperform in the near future. Furthermore, we are performing well in all our business segments and have maintained their strong growth momentum. We are continuously aiming to increase the market share with new product launches over a period of time and expanding the existing products to the new markets. Further, the focus is on strengthening the medical representative team to enhance the domestic formulation. Along with these, we believe that the PLI scheme introduced by the Government will be an addon to our growth targets, and it is expected to enhance Companie's profitability over next 5 years."

Shares of Bal Pharma Limited was last trading in BSE at Rs. 104.05 as compared to the previous close of Rs. 120.15. The total number of shares traded during the day was 53192 in over 1783 trades.

The stock hit an intraday high of Rs. 114.00 and intraday low of 100.90. The net turnover during the day was Rs. 5792651.00.

Source : Equity Bulls

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