Credit rating agency, CARE has assigned ‘BB+’ rating to Mangalam Drugs & Organics’ Long-term bank facilities worth Rs 14 crore. The rating agency has also assigned ‘A4+’ rating to company’s Short-term Bank Facilities worth Rs 6 crore.
The ratings assigned to the bank facilities of Mangalam Drugs and Organics (MDOL) are constrained by its relatively small scale of operations in the Active Pharmaceutical Ingredients (APIs)/ Bulk Drugs Industry along with limited product offerings, client concentration risk and working capital-intensive nature of operations. The ratings also factor in MDOL’s low profitability margins and its susceptibility to foreign exchange fluctuation, volatile raw material prices as well as prevailing intense competition in the API/Bulk drugs industry
Mangalam Drugs & Organics is engaged in manufacturing of Active Pharmaceutical Ingredients APIs, Intermediates at VAPI, Gujarat.
