­Experienced management and established relationship with customers
Established in 2011, the company has been operational for a decade. The key promoters, Mr. Sunil Garg & Mr. Mohit Agarwal have more than 2 decades of experience in the business. The long standing experience of the promoters and long track record of operations has helped them to establish comfortable relationships with key suppliers and reputed customers across the continents. Acuité derives comfort from the long experience of the management and believes this will benefit the company going forward, resulting in steady growth in the scale of operations.

Repeat orders from overseas client
Acuité draws comfort from the company’s diversified geographical presence with exports to countries such as Kazakhstan, Russia, UAE, China,Saudi Arabia and so on. It has a global presence in five to six nations. Having been in business for almost a decade ensures a positive relationship with consumers. Tealand Branch of RG Brand (Kazakistan) and Fuzhou Lianshengfeng International Trade Co. Ltd (China) are two of the company's most important clients accounting for ~62 per cent of its revenues. However, the company enjoys an established relationship with these customers, which have been awarding it with repeat businesses. As on May 2025, the unexecuted order book stood at ~Rs.136 Cr. which is to be executed in the near term thus providing revenue visibility.

­Decline in operating performance year on year basis
ATCPL has been facing decline in topline majorly due to lower demand of products globally, which the company tried to mitigate by selling at lower prices. This impacted their topline, where volumes sold were higher but realisation lower in FY25 despite rise in revenue. Impending geopolitical tensions affecting supply chains – majorly Red Sea – may affect the operations of the company and will remain a key monitorable. Additionally, ATCPL benefitted from the interest subvention provided by the government, which has extinguished since December 2024. 

Average Financial Risk Profile
The tangible net worth of the company stood at Rs.46.17 Cr. as on March 31, 2025, as compared to Rs.43.86 Cr. as on March 31, 2024, due to accretion to reserves. The gearing of the company stood at 1.73 times as on 31 March 2025 having reduced slightly from FY24 levels owing to reduction in long term debt. Further, the Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.08 times as on March 31, 2025 as compared to 2.41 times as on March 31, 2024. The debt protection metrices of the company remain weak marked by Interest coverage ratio (ICR) of 1.5 times and debt service coverage ratio (DSCR) of 0.89 times for FY2025.The net cash accruals to total debt (NCA/TD) stood healthy at 0.04 times in FY2025. DSCR has gone below unity due to lower cash accruals, however repayment obligations were met out of GST refund worth ~Rs.3-4 Cr. Acuite believes that the financial risk profile is likely to improve at the back of improving business dynamics and absence of debt funded capex plans.

Working Capital Management: Intensive
The working capital management of the company is intensive marked by Gross Current Assets (GCA) of 164 days for FY2025 as compared to 201 days for FY2024. Higher GCA days are due to higher receivables and inventory holding for tea exports which usually range for 2-3 months.  The inventory days of the company stood at 22 days in FY2025 as compared to 20 days in FY2024. The debtor days stood at 117 days in FY2025 against 129 days in FY2024. Although most payments are realised within 90 days, debtor’s days are high owing to geopolitical tensions in few countries where products are exported to. Payments are received using Telegraphic Transfer / Cash Against Document / LC at sight which varies depending upon customer. Days payable outstanding stood at 21 days against 25 days in FY2025. Acuite believes that the working capital management of the company will likely remain similar over the medium term owing to long receivable days arising from geopolitical tensions in export countries, as well as inventory holding policy due to nature of the industry.