Infomerics Upgrade Fredun Pharmaceuticals Credit Rating to BBB+

Fredun Pharmaceuticals Limited (BSE - FREDUN | 539730), is one of the Leading Pharmaceuticals Formulation manufacturing companies in India. Diversified into Generics, Cosmeceuticals, Nutraceuticals, Mobility and animal healthcare products, has secured a credit rating upgrade from Infomerics Valuation and Rating Limited for its bank facilities aggregating to ₹156.17 crore.

Infomerics has upgraded the Company's long-term bank facilities to IVR BBB+ with Stable Outlook from IVR BBB with Stable Outlook, while reaffirming the short-term rating at IVR A2. Earlier, the company received a similar upgrade from Brickwork, raising its bank facility credit rating from A3+ to A2.

A Clear Validation of Strengthening Fundamentals

The rating upgrade is a significant milestone that reflects Fredun Pharmaceuticals improved operational performance, stronger financial profile, and disciplined capital management across FY24 and FY25 (Audited).

The total bank facilities rated comprise:

- ₹143.17 crore - Long-Term Bank Facilities
- ₹13.00 crore - Long-Term/Short-Term Working Capital Facilities

The upgraded IVR BBB+ rating indicates an enhanced degree of safety regarding timely servicing of financial obligations and demonstrates improving credit quality. The Stable outlook further signifies the rating agency's confidence in the Company's ability to sustain its performance trajectory and maintain a balanced financial risk profile.

Strategic Significance of the Upgrade

This development goes beyond a routine rating review. It represents:

- Strengthened banking confidence and institutional credibility
- Improved financial flexibility to support expansion initiatives
- Potential optimization of borrowing costs
- Enhanced positioning for future growth capital requirements

As Fredun Pharmaceuticals continues to expand its export presence across Africa, Southeast Asia, CIS countries and Latin America, the upgraded credit rating strengthens its financial flexibility to efficiently manage working capital and support strategic growth initiatives.

The upgrade reflects the Company's consistent revenue momentum, operational efficiency and prudent leverage management, reinforcing its commitment to building a resilient, scalable and globally competitive pharmaceutical platform.

Commenting on the update, Mr. Fredun Medhora, Managing Director, said, "This upgrade is encouraging for all of us at Fredun. It reflects the hard work of our team and the disciplined manner in which we are building the business. As we continue to grow across markets, our focus remains on strengthening the Company's foundation while pursuing larger opportunities responsibly."

Shares of Fredun Pharmaceuticals Ltd was last trading in BSE at Rs. 1646.60 as compared to the previous close of Rs. 1667.15. The total number of shares traded during the day was 7855 in over 497 trades.

The stock hit an intraday high of Rs. 1703.00 and intraday low of 1600.00. The net turnover during the day was Rs. 12830504.00.

Source : Equity Bulls

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