Glenmark Pharmaceuticals upgraded to 'BB' on expected maintenance of lower leverage, Outlook Stable

Glenmark Pharmaceuticals Ltd.'s debt is likely to decline by about 25% in fiscal 2022 (year ending March 31, 2022) given management's commitment to maintain lower leverage following a recent equity raising at its subsidiary.

S & P expects the India-based pharmaceutical player to maintain conservative debt levels given limited upcoming capital investments and healthy free operating cash flow. This should boost the company's ratio of funds from operations (FFO) to debt to 35%-40% in fiscal 2022.

Therefore, S & P has raised its long-term issuer credit rating on Glenmark to 'BB' from 'BB-'.

The stable outlook reflects its view that Glenmark will maintain its financial policy such that its FFO-to-debt ratio will remain comfortably above 30%.

Shares of Glenmark Pharmaceuticals Limited was last trading in BSE at Rs. 482.90 as compared to the previous close of Rs. 502.25. The total number of shares traded during the day was 141377 in over 8475 trades.

The stock hit an intraday high of Rs. 503.90 and intraday low of 481.00. The net turnover during the day was Rs. 69117481.00.

Source : Equity Bulls

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