BSEDenis Chem Lab LtdMediumNeutral
Announced Tue, 28 Oct · 20:26 IST

Ratings reaffirmed at ''Crisil BBB/Stable/Crisil A3+''

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

CRISIL has reaffirmed Denis Chem Lab's credit ratings on its Rs. 27.99 crore bank loan facilities — long-term at BBB/Stable and short-term at A3+. The rating reflects the promoters' four-decade experience in manufacturing intravenous fluids (IVFs), a comfortable financial risk profile (networth Rs 85 crore, near-zero gearing of 0.01x), and strong interest coverage of 32x. Offsetting weaknesses include modest revenue scale (Rs 173 crore in FY25, up only marginally from Rs 168 crore in FY24) and a working-capital-intensive cycle with receivables of about 64 days. PAT fell to Rs 8.08 crore in FY25 from Rs 11.16 crore in FY24. Liquidity is adequate with Rs 24 crore in cash and negligible bank limit utilisation.

Likely market impact

The reaffirmation signals that CRISIL sees no deterioration in the company's credit profile and expects financial health to stay comfortable over the medium term. For shareholders, this is a neutral-to-mildly positive signal — the rating has held steady since the upgrade to BBB last year, though the decline in profit and modest growth remain watchpoints.