RPG Life gains after ICRA upgrades credit rating

RPG Life Sciences rose 2.19% to Rs 375.85 after the credit rating agency ICRA upgraded the ratings of the credit facilities of the company worth Rs 100.92 crore.

ICRA has upgraded the long-term loans and long-term fund-based facilities of the company to '[ICRA] A (Stable)' from '[ICRA] A- (Stable)'. It has also upgraded the short-term, non-fund-based facilities of the company to '[ICRA] A1' from '[ICRA] A2+'.

"The rating upgrade factors in the considerable improvement in the operating performance of RPG Life Sciences (RPGLS or the company) on the back of improvement in its sales hygiene and cost rationalisation measures adopted by the company over FY2020 and H1 FY2021, the credit ratings agency said in a statement.

It further said that the rating continues to factor in RPGLS' strong brands in the Indian pharmaceutical industry, its diversified and integrated operations with presence in regulated markets, and financial flexibility arising from being part of the RPG Group.

The 'stable' outlook reflects ICRA's opinion that RPGLS will continue to benefit from its established products in the domestic and international formulations businesses along with its strong financial risk profile and financial flexibility enjoyed as part of the RPG Group.

RPG Life Sciences, a part of the RPG Group, is an integrated pharmaceutical company operating in the domestic and international markets in the branded formulations, global generics and APIs space.

On a year-to-date (YTD) basis, the stock has added 21.76% while the benchmark S&P BSE Sensex has added 13.43% during the same period.

Powered by Capital Market - Live News