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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 33.25 | ACUITE BBB+ | Positive | Assigned | - |
| Bank Loan Ratings | 9.55 | ACUITE BBB+ | Positive | Reaffirmed | - |
| Bank Loan Ratings | 18.75 | - | ACUITE A2 | Assigned |
| Bank Loan Ratings | 16.45 | - | ACUITE A2 | Reaffirmed |
| Total Outstanding | 78.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of 'ACUITE BBB+' (read as ACUITE Triple B plus) and the short-term rating of 'ACUITE A2'(read as ACUITE A Two) for bank facilities of Rs. 26 crore of Rajputana Industries Limited (Erstwhile Rajputana Industries Private Limited). The outlook has been revised from 'Stable' to 'Positive'.
Acuite has assigned long term rating 'ACUITE BBB+' (read as ACUITE Triple B plus) and short term rating of 'ACUITE A2' (read as ACUITE A two) for bank facilities of Rs. 52 crore of Rajputana Industries Limited. The outlook is 'Positive'. Rationale for Rating The revision in the outlook considers with continued improvement in the scale of operations albeit slight moderation in operating margin in FY 25 and improving liquidity position of the group. The revenue from the operations of the group has improved by 45.96%, thereby increasing the topline from Rs. 875.10 Cr. in FY 2024 to Rs. 1,277.30 Cr. in FY 2025. The net margin rose from 1.61% in FY 24 to 1.75% in FY 25. The financial risk profile of the group remains heathy in FY 25 marked by comfortable gearing and improvement in tangible net worth on account of IPO proceeds in Rajputana Industries Limited in August 2024. The strong liquidity profile was marked by cash & bank balance including free fixed deposits of Rs. 52.28 Cr. as on 31st March 2025 and steady & increasing accruals albeit minimum debt repayments. However, the above strengths are partly balanced by competitive industry and susceptibility of profitability margins due to volatility in raw material prices. |
| About the Company |
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Jaipur based, Rajputana Industries Limited (RIL) was incorporated in the year 2011 by Mrs. Shivani Sheikh. The company is engaged in the manufacturing of copper, cooper aloy and cupronickel casted, extruded and drawn products which are bilets/ingots, Mother shels, Tubes/pipes, Holow/solid rods, sections and profiles etc.
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| About the Group |
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Shera Group (SG) was formed with the establishment of a proprietorship firm, Shera Metals & Engineers, in 2003 by Mr. Naseem Sheikh. Shera Energy Limited (SEL) had three subsidiaries: Shera Metal Private Limited (SMPL), Rajputana Industries Limited (RIL), and Shera Infrapower Private Limited (SIPL). SMPL is engaged in the manufacturing of copper bus bar, tin-plated copper bus bar, PCC poles, brass rod and wire, and paper-covered copper strips, while RIPL was incorporated with a view to securing a backward integration of its product lines manufactured by SEL and SMPL through the manufacturing of mother tubes of brass (copper and zinc mix) tube, copper nickel (copper nickel mix) tube, and brass rod and section (copper and zinc). Group has now sold Shera Infrapower Private Limited and floated one subsidiary in Zambia names as Shera Zambia Limited. SEL now has three subsidiaries: Shera Metal Private Limited (SMPL), Rajputana Industries Limited (RIL) and Shera Zambia Limited.
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered the consolidated business and financial risk profiles of Shera Energy Limited (SEL), Shera Metal Private Limited (SMPL), Rajputana Industries Limited (RIL), and Shera Zambia Limited to arrive at this rating. The consolidation is on account of common management, presence in the same line of business, and significant business and financial synergies between the entities. The group is herein referred to as "Shera Group (SG)". |
| Key Rating Drivers |
| Strengths |
| Experienced management and an established track record of operations
The group is a producer of copper and aluminium winding wires along with other products like bus bars of copper, aluminium, and brass, copper, copper alloys, and cupronickel casted, extruded, and drawn products, viz. bilets and ingots, mother shels, tubes and pipes, rods, profiles, and sections. The promoters and directors of the group have over a decade of experience in the aforementioned industry. SG caters to the demands of various industries, such as LPG valve manufacturing, automobiles, forging, marine, power generation, and the electrical industry, to name a few, through its diversified product portfolio. Over the years, the group has developed healthy relationship with its customers and suppliers. It is also undertaking backward integration for refining copper in its foreign subsidiary which is expected to improve its operational synergies over the medium term. Acuite believes that given the experienced management and established track record of operations, the group is expected to continue to draw the benefits over the medium term. Improvement in scale of operations & Profitability The revenue from the operations of the group has improved by 45.96%, thereby increasing the topline from Rs. 875.10 Cr. in FY 2024 to Rs. 1,277.30 Cr. in FY 2025. The improvement in revenue is mainly due to increasing volume units sold as well as increasing average price realization in FY 25 against FY 24. Further, the group booked the net revenue of Rs. 780.65 crore in H1 FY 26, marking a 29.81% increase compared to Rs. 601.37 crore in H1 FY25. The operating profit (EBITDA) of the group improved from Rs. 51.35 Cr. in FY 24 to Rs. 58.73 Cr. in FY 25. The operating margin declined due to change in management's strategy to promote effective & early customer collections by offering discounts. However, the net profit margin rose from 1.61% in FY 24 to 1.75% in FY 25 mainly due to lower dependence on working capital facilities and thus reduce the finance costs. Further, the group reported significant improvement in EBITDA & PAT levels rising from Rs. 28.60 Cr. & Rs. 9.67 Cr. in H1 FY 25 to Rs. 39.41 Cr. & Rs. 15.21 Cr. in H1 FY 26 respectively. Acuite believes going forward, the scale of operations & profitability of the group wil improve on account of expected higher toplines and improving profitability. Healthy Financial Risk Profile The group has healthy financial risk profile marked by net worth, comfortable gearing and coverage indicators. The total tangible net worth of the group improved & stood at Rs. 199.05 Cr. as on 31st March 2025 against Rs. 139.54 Cr. as on 31st March 2024. The improvement is net worth is mainly due to accretion of profits into reserves and fresh IPO proceeds received under Rajputana Industries Limited in August 2024. The group follows conservative leverage policy. The gearing ratio stood comfortable at 0.93 times in FY 25. The Total outside liabilities to total net worth (TOL/TNW) improved & stood at 2.08 times as on FY 2025 against 2.17 times as on FY 2024. Further, Debt Protection Matrices i.e. DSCR & ISCR improved & stood at 1.45 & 2.49 times for FY 25 against 1.20 & 1.80 times for FY 24 respectively. ROCE stood at 16.77% for FY 25. Currently the group is setting up new unit in Shera Metal Private Limited for manufacturing CTC (Continuously Transposed Conductors), Super Fine Copper Wires, and Copper Ribbons for electrical equipment manufacturing industries. It is expected to commence its commercial operations by February 2026. It is funded through mix of external debt & promoter’s infusion. Acuite believes that financial risk profile of the group is expected to remain healthy in near to medium term on the account of steady accruals despite debt funded ongoing capex. |
| Weaknesses |
| Competitive industry
The group is currently operating in the winding wire/conductor industry is highly competitive and fragmented, featuring many organized and unorganized manufacturers. This is primarily because the production of winding wires, rods, and ingots requires low technical expertise and offers minimal value addition. Consequently, intense competition limits the group's bargaining power. Susceptibility to margins due to volatity in raw material prices The group face significant susceptibility to margin erosion due to the high volatility in the prices of metals. Since raw materials constitute a major portion of their production costs, sharp, unexpected price increases can swiftly squeeze profit margins if finished goods prices cannot be adjusted quickly or effectively. This sensitivity necessitates robust risk management strategies, such as hedging and maintaining optimal inventory levels, to mitigate the financial impact of rapid market fluctuations and protect profitability. |
| Rating Sensitivities |
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| Liquidity Position |
| Strong |
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The liquidity profile of the group is strong marked by generating net cash accruals of Rs. 28.40 Cr. in FY 25 against the maturing debt obligations of Rs. 12.12 Cr. for the same year. The group has free cash & bank balance (including free fixed deposits) of Rs. 52.28 Cr. as on 31st March 2025. The current ratio stood at 1.31 times for FY 25. The average fund-based and non-fund based utilization of the group for last six months ending June 2025 is 79.37% & 70.97% respectively. Acuite believes, the liquidity of the group is expected to improve in near to medium term with steady cash accruals indicating availability of funds for any future endeavours.
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| Outlook - Positive |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 1277.30 | 875.10 |
| PAT | Rs. Cr. | 22.40 | 14.05 |
| PAT Margin | (%) | 1.75 | 1.61 |
| Total Debt/Tangible Net Worth | Times | 0.93 | 0.76 |
| PBDIT/Interest | Times | 2.49 | 1.80 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on complexity levels of the rated instrument |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||
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