­Experienced management and an established track record of operations
BOTIPL is promoted by Mr. H L Khushalani and currently being managed by Miss. Raksha Khushalani and family members who collectively possess experience of nearly 5 decades in the same industry. The extensive experience of promotors has helped the company in establishing long-term relationships with its customers and suppliers for repeat orders. BOTIPL's customers include companies includes ONGC, Oil India Limited and many other customers from GCC and MENA, South east Asia, LATAM etc. The extensive industry experience and relations has helped the company in improving its scale of operations over the years. Acuite believes that BOTIPL may continue to benefit from its established track record of operations and longstanding relationships with its customers and suppliers.

Stable operating performance:
BOTIPL registered revenue of Rs.135.76 Cr in FY2025, grown by almost ~29 percent compared to Rs.105.62 Cr registered in FY2024. This growth in revenue was due to increased order flow for flow control equipment and packers. Additionally, during the H1FY2026 the company registered revenue of Rs.42.29 Cr as compared to Rs.45.55 Cr in H1FY2025 and expected to end the year with the revenue range of Rs.115-125 Cr. The operating profit margin declined to 19.48 percent in FY2025 from high of 29.75 percent registered in FY2024. The decline in margin was primarily due to increased competitive pressure in bidding. Further, the PAT margin also declined marginally to 16.05 percent in Fy2025 from 19.44 percent in FY2024, however, in absolute terms improved marginally to Rs.21.78 Cr in FY2025 from Rs.20.53 Cr in FY2024, due to profits from sale of land. Acuite believes, operating performance would remain in the similar levels, while profitability expected to improve marginally.

Healthy financial risk profile:
The company’s financial risk profile is healthy marked by healthy networth, low gearing and healthy debt-protection metrics. The net worth stood at Rs.105.10 Cr as on March 31, 2025 compared to Rs.83.27 Cr as on March 31, 2024. The improvement in net worth is due to accretion of profits to reserves. The debt level (comprising long-term debt of Rs.3.03 Cr, Rs.31.36 Cr short-term debt and Rs.1.88 Cr of current maturities of long-term debt) declined to Rs.36.27 Cr as on March 31, 2025 against Rs.75.01 Cr as on March 31, 2024, owing to closure of entire unsecured loans of Rs.26.82 Cr during FY2025. Consequently, the gearing level and total outside liabilities to tangible net worth (TOL/TNW) improved to 0.35 times and 0.44 times, respectively as on March 31, 2025 from 0.90 times and 1.02 times as on March 31, 2024. The debt protection metrics remained healthy with interest coverage ratio (ICR) and debt service coverage (DSCR) of 5.03 times and 3.94 times as on March 31, 2025 compared to 4.98 times and 4.28 times respectively as on March 31, 2024. Debt to EBITDA also improved to 1.10 times as on March 31, 2025 against 2.36 times as on March 31, 2024. Acuite believes, the financial risk profile of the company will remain healthy over the medium-term in absence of debt funded capex plans and improving profitability.

­Intensive working capital operations:
The working capital operations remained intensive as reflected through the gross current asset (GCA) of 267 days in FY2025 compared to 445 days in FY2024. The GCA days improved though remained elongated levels due to high inventory levels, which majorly comprises of work-in-progress. Inventory days improved yet remained high at 172 days in FY2025 as against 337 days in FY2024. The high inventory days is the requirement in this business as it takes approximately 7 -8 months for the raw material (which includes 2 months for production of the special metal composition required by the customer coupled with 3-4 months of transportation and 2 months of inspection at receiving port) before it reaches to the company’s warehouse. Additionally, receivable period has also improved in FY2025 to 96 days from 165 days in FY2024, which resulted in improvement of GCA days. However, the dependency on the fund based working capital limits remained moderate at ~60 percent during the past 12 months ending October 2025. Acuite believes that the working capital operation will remain intensive with high inventory days.

Susceptibility of profitability to volatility in raw material prices and forex fluctuations:
BOTIPL's key inputs including alloy steels and other metal components, are exposed to inherent price volatility, which can exert pressure on operating margins in the absence of adequate price-revision mechanisms with customers. The essence of fluctuation in prices is present in this industry. However, because roughly half of the raw materials are imported, there is a natural hedge to some extent, as is demonstrated by the fact that the company has not suffered any huge foreign exchange losses.