Bafna Pharma gets 'Crisil'ed

Bafna Pharma continues to celebrate the upgrade in its credit rating by Crisil, announced yesterday. The stock which had closed yesterday at Rs.33, opened today at Rs.34.60 and going on to an intra day high at Rs.36.50. It currently remains over 7.5% higher.

Yesterday, Crisil upgraded its short-term and long-term ratings in respect of total bank facilities. The rating agency has upgraded the rating to Crisil BB-/stable (from Crisil D) for the long term and Crisil A4+ (from Crisil D) for the short term. These ratings now indicate that they carry the least risk in terms of timely payment of financial obligations.

The company had ended Q2FY15 on a bumper note with a whopping 2692% (YoY) jump in net profit at Rs.33 crore despite a 51% fall in net sales at Rs.23 crore. This was thanks to the addition of Rs.42 crore as ‘other operating income’ accrued from sale of its domestic business to Strides Arcolab in July’14.

The company sold off 74% stake and this was transferred to a special purpose vehicle (SPV), with focus on drug ingredients and formulation exports. Post this, Bafna continues to make products for the new company where it holds 26% stake but the Strides controlled SPV has the sole right to sell its largest selling drug, Raricap in the international market.