BackBaba Ramdev’s Patanjali Ayurved gets stable rating for its bank loans
Currently Patanjali Ayurved has a loan of `320 crore from Punjab National Bank under two facilities
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Mumbai: Baba Ramdev’s Patanjali Ayurved Ltd was assigned a BWR AA-/A1+ rating by ratings agency Brickwork Ratings on Monday for its bank loans of ₹ 320 crore. The rating stands for a stable outlook.
Currently Patanjali Ayurved has a loan of ₹ 320 crore from Punjab National Bank under two facilities—one being a fund-based cash credit of ₹ 300 crore for the long term and the second a non-fund based bank guarantee for the short term of ₹ 20 crore, a spokesperson at Brickwork Ratings said in an e-mail.
The ratings firm relied principally on the audited financial results up to fiscal 2015, provisional financials up to January 2016, estimates for fiscal 2016, publicly available information and information and clarifications provided by the company management.
Haridwar-based Patanjali Ayurved, started in 2007, makes nearly 800 products, from face creams to noodles, and has plans to expand to food parks, Mint reported on Monday.
Patanjali is a privately held company promoted by Acharya Bal Krishnan and Swami Muktanand, both of whom are closely associated with Baba Ramdev. Acharya Bal Krishnan holds 94.06% of the shareholding, said the ratings report.
Analysts at India Infoline Ltd have estimated the company’s sales to grow from ₹ 2,000 crore in financial year 2015 to ₹ 20,000 crore by fiscal 2020 as it expands its network and enters new categories and also gains double digit market share in 10 of the 25 categories that the brokerage analysed for its January report.
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