JCR-VIS assigns positive outlook to Entity Rating of Ali Gohar and Company (Private) Limited

Karachi, April 16, 2015 (PPI-OT): JCR-VIS Credit Rating Company Ltd. has maintained entity ratings of Ali Gohar and Company (Private) Limited (AG and C) at ‘A-/A-2’ (Single A Minus/A-Two). Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’. The previous rating action was announced on 21 January 2014.

The assigned ratings incorporate low business risk and sound financial risk profile of AG and C. Ratings also reflect company’s status as one of the leading national distributor in the country, stable cash flows and sizeable liquidity carried on balance sheet. Moreover, experienced and professional management team, sound IT infrastructure and favourable working capital cycle which results in limited external funding requirements provide support to the ratings.

Revenues of the company have increased consistently over the years. Profitability has witnessed healthy growth in the on-going year due to increase in sales in the specialized healthcare product segment, reduction in distribution cost and incremental income arising from short-term investments.

Liquidity profile of the company has strengthened on a timeline basis due to conversion of non-earning assets into marketable securities from funds realized from sale of investment property. Liquidity profile of the company is also supported by stable cash flow from operations. Capitalization levels of the company have strengthened over time on account of internal capital generation and profit retention.

AG and C is one of the leading national level distributors in the country, particularly in the pharmaceutical business. Management team of the company is spearheaded by Mr. Arshad Gohar. Senior management team has remained stable and comprises experienced individuals.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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