Press Release

Press Release

June 17, 2025

SHINE AGROTECHNOLOGY PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE BBB+ \| Stable \| Assigned	-
Bank Loan Ratings	65.00	ACUITE BBB+ \| Stable \| Reaffirmed	-
Total Outstanding	115.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB+' (read as ACUITE triple B plus) on Rs 65 Cr. bank facilities of Shine Agrotechnology Private Limited (SAPL). The outlook remains ‘Stable’.

Acuite has also assigned its long-term rating of 'ACUITE BBB+' (read as ACUITE triple B plus) on Rs.50 Cr. additional bank facilities of Shine Agrotechnology Private Limited (SAPL). The outlook is 'Stable'.

Rationale for rating:
The rating reaffirmation continues to factor in the experience of SAPL’s management in the industry, improving scale of operations and expectation of same being sustained over medium term. The company registered steady revenue growth over the past three years, with a compounded annual growth rate (CAGR) of ~10 percent, primarily driven by increasing orders and higher capacity utilization of its processing plant. The operating profit margin has also shown marginal year-on-year improvement due to better realizations. The rating is further supported by the company's above average financial risk profile. However, it is constrained by moderately intensive working capital operations and presence in highly competitive and fragmented industry. Going forward, SAPL's ability to sustain similar growth in revenue and improving the profitability will be a key rating monitorable.

About the Company

Incorporated in 2014, Shine Agrotechnology Private Limited is promoted by Mr. Balan M. Thevar. The company is engaged in farming, trading and processing of various agro products. These include rice, polished and semi polished tur dal, pulses, oil cake, de-oil cake, roasted grams, and fruits. The company is into core agricultural operations since incorporation. Currently it has 300 acres land in Tirunelveli dist. of Tamil Nadu, with~ 180 under cultivation. The major agricultural products are banana, amla, lemon, coconut, mango, seasonal fruits and vegetables such as, brinjal, ash gourd, pumpkin, watermelon and tapioca. Additionally, the company is also engaged into trading of agro commodities like rice, polished and semi polished toor dal and pulses, oil cake, de-oil cake, roasted grams, nachni powder, fruits, garlic and ginger. It sources and sells these products in Mumbai, Gulbarga, Udhgir, Madurai and parts of Gujarat & Maharashtra. Shine Agrotechnology also has a processing facility for grams & pulses with a capacity of 70 tonnes per day.

Unsupported Rating

Not applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of SAPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and established track record of operations.
SAPL is a Mumbai based company incorporated in 2014 and founded by Mr. Balan M Thevar. The promoters Mr. Balan M Thevar and Mr. Anand Mani have an experience of over a decade in the agro industry and are second generation agriculturists from Tamil Nadu with a land of 180 acres in the company’s name. Further, the company also has a processing unit for grams and pulses with a capacity of 70 tonnes per day. Acuité believes that SAPL’s business risk profile will be supported by promoters’ expertise and extensive experience in the industry along with a sufficient capacity available to carry out its operations.

Improving scale of operations:
SAPL’s revenue improved to Rs.592.47 Cr. in FY2025 (Prov.), from Rs.487.39 Cr. in FY2024. This growth is primarily attributed to the increasing orders for processing and trading segments coupled by increased capacity utilization in processing segment. Further, the operating profit margin continued to remain stable at 4.77 percent in FY2025 (Prov.), compared to 4.73 percent in FY2024, attributed to stable realizations for its products. PAT margin also remained stable at 3.23 percent in FY2025 (Prov.) against 3.18 percent in FY2024.
Acuite believes that, the revenue of the company is expected to improve over the medium term on account of increasing orders and increased capacity utilization.

Moderate financial risk profile:
The financial risk profile of the company is moderate, marked by moderate net worth, moderate gearing and healthy debt protection metrics. The net worth of the company stood at Rs.103.15 Cr. as on March 31, 2025 (prov.) as against Rs.79.04 Cr. as on March 31, 2024. The improvement in networth is due to accretion of profits to the reserves. The total debt (majorly short-term debt) stood at Rs.96.06 Cr. as on March 31, 2025 (Prov.) against Rs.73.61 Cr. as on March 31, 2024. The gearing levels remained moderate at 0.93 times as on March 31, 2025 (Prov). Further, the total outside liabilities to tangible networth (TOL/TNW) also moderate at 1.18 times as on March 31, 2025 (Prov.) against 1.27 times as on March 31, 2024. The debt protection metrics stood healthy with DSCR and ICR of 3.05 times and 4.17 times respectively as on March 31, 2025 (prov.). Debt to EBITDA has marginally deteriorated at 3.35 times as on March 31, 2025 (Prov.) against 3.18 times as on March 31, 2024. Acuite believes that the financial risk profile of the company will improve over the medium term due to its conservative leverage policy and absence of any debt funded capex plans.

Weaknesses

Moderately intensive working capital operations:
The working capital operations of SAPL are moderately intensive as reflected by the gross current days (GCA) days of 107 days in FY2025 (Prov.) compared to 105 days in FY2024. The elongation in GCA days is due to higher debtor days. SAPL allows a credit period of 90 days to its customers and does majority of the sales during the Q4 leading to build up of debtors in the last quarter. The inventory days stood at 28 days in FY2025 (Prov.) compared to 14 days in FY2024.
Acuite believes that the working capital operations of the company will remain moderately intensive over the medium term owing to the nature of its business operations.

Thin margins from trading segment
The operating margins (EBIDTA) stood at 4.77 percent in FY2025 (prov.) compared to 4.73 percent in FY2024. The Profit after tax margins (PAT) stood at 3.23 percent in FY2025 (Prov.) against 3.18 percent in FY2024. Majority of the profitability is contributed by core agricultural activity and the trading activities, while profitability from the value addition activity i.e. from processing is observed to be marginal. With presence in trading and processing of agricultural products, the company's profitability is expected to remain thin over the medium term.

Highly competitive and fragmented industry
The agro processing industry is highly competitive and fragmented with several organised and unorganised players. The intense competition and low value addition in the agro processing industry have resulted in low operating margins.

Rating Sensitivities

Sustained growth in revenue and improvement in its profitability margins.
Elongation of the working capital cycle leading to stretch in liquidity.

Liquidity position: Adequate

SAPPL registered NCA’s of Rs.20.02 Cr. as on March 31, 2025 (prov.) against the repayment debt obligation of Rs.1.94 Cr. for the same period. NCA’s are expected to range between Rs.22-32 Cr. over the medium term which would comfortably meet the expected repayment range of Rs.0.05-0.90 Cr. The company’s current ratio stood moderate at 1.48 times as on March 31, 2025 (Prov.). The fund based bank limits were utilized at an average of 81 percent during the past 12 months ending April, 2025.
Acuité believes the company will maintain adequate liquidity position over the medium term backed by adequate cash accruals as against the repayment obligations.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	592.47	487.39
PAT	Rs. Cr.	19.11	15.48
PAT Margin	(%)	3.23	3.18
Total Debt/Tangible Net Worth	Times	0.93	0.93
PBDIT/Interest	Times	4.17	4.10

Status of non-cooperation with previous CRA (if applicable)

Not applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
27 Mar 2025	Letter of Credit	Short Term	5.00	ACUITE A2 (Upgraded from ACUITE A3+)
	Cash Credit	Long Term	40.00	ACUITE BBB+ \| Stable (Upgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	20.00	ACUITE BBB+ \| Stable (Assigned)
30 Mar 2024	Letter of Credit	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	20.00	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	20.00	ACUITE BBB \| Stable (Reaffirmed)
09 Mar 2023	Letter of Credit	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	20.00	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	20.00	ACUITE BBB \| Stable (Reaffirmed)
02 Mar 2022	Letter of Credit	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	18.00	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB \| Stable (Assigned)
	Cash Credit	Long Term	7.00	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Axis Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB+ \| Stable \| Assigned
Axis Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE BBB+ \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB+ \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Katta Akhil
Senior Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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