Press Release

Press Release

December 31, 2025

UNIVERSAL IMPORT EXPORT AND HOSPITALITY PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	125.00	ACUITE BBB- \| Positive \| Reaffirmed	-
Bank Loan Ratings	10.00	-	ACUITE A3 \| Reaffirmed
Total Outstanding	135.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and short-term rating of ‘ACUITE A3’ (read as ACUITE A three) on the Rs. 135.00 Cr. bank facilities of Universal Import Export and Hospitality Private Limited (UIEHPL). The outlook is revised to 'Positive' from 'stable'.

Rationale for reaffirmation and outlook revision

The rating reaffirmation takes into account the steady operating performance of UIEHPL over the years. Further, the outlook revision takes into account the continuous improvement in the operating margins and expected topline improvement in FY2026, which remains a key rating monitorable. The rating reaffirmation also takes into account the moderate financial risk profile. However, the rating is constrained on account of working capital nature of operations and significant geographical concentration risk in Africa.

About the Company

Incorporated in 2012, Universal Import Export and Hospitality Private Limited (UIEHPL) is a 100 percent export oriented entity. Initially it was started as a proprietorship firm in 1972, which was later converted into private limited company in the year 2012. It was later merged with another group company - Universal Hotels Private Limited and was renamed as Universal Import Export and Hospitality Private Limited. UIEHPL is recognised as Two Star Export house by Director General of Foreign Trade, Govt. Of India. Further, UIEHPL owns two hotels; Hotel Airlink at Vile Parle East, Mumbai consisting of 40 rooms and Hotel Saiways, Sinnar Nashik having 49 rooms. The current directors of the company are Mr. Narayan J. Pagarani and his son Mr. Narendra N. Pagarani.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of Universal Import Export and Hospitality Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of the operations.
UIEHPL an export-oriented company, established in 1972 by Mr. Narayan Pagarani, having an presence of almost five decades. The company records its revenue from two business verticals i.e., Export business and the Hotel business. The main business vertical of the company is the export of local goods to various African countries. It is also involved in merchanting trade in which it purchases the product around the world and ships it directly to its buyers situated in Africa. The major products exported are the fabrics, coffee, extra neutral alcohol, and various other products according to client specific needs. Further, UIEHPL has been able to establish a long and stable relations with its buyers over the years. The company has been in business with some of its top clients from last 25 years.
Acuite believes that UIEHPL will continue to benefit from its vast promoter’s experience in the export industry with established track record of operations and stable relationship with its clients over the years.

Steady revenue with improving profitability
The company has been maintaining a steady topline over the last three years, with revenues in the range of Rs. 301 - 307 Cr. However, the operating margins have been continuously improving; with EBITDA margin at 7.13 percent in FY2025 from 6.71 percent in FY2024 and 5.96 percent in FY2023 aided by reduced procurement costs due to bulk discounts and efficiency of operations. Further the PAT margin stood at 3.38 percent in FY2025 (2.64 percent in PY). Further, the company has generated a revenue of Rs. 240 Cr till 8M FY2026 as against Rs. 139 Cr in 8M FY2025.
Going forward, improvement in the operating revenue while maintaining profitability margins will be a key monitorable.

Moderate financial risk profile
The financial risk profile of UIEHPL is marked by growing networth, moderate gearing and adequate coverage metrics. The tangible networth of the company stood improved at Rs. 77.12 Cr on March 31, 2025 as against Rs 70.82 Cr as on March 31, 2024, owing to profit accretion. Increase in the working capital utilization during the year end led to marginal increase in gearing levels to 1.38 times in FY2025 from 1.10 times in FY2024 however it continues to remain moderate. Further, the coverage indicators stood comfortable with interest coverage ratio (ICR) at 3.47 times and debt service coverage ratio (DSCR) at 2.73 times in FY2025.
The financial risk profile is expected to remain on similar levels, owning to no debt funded capex plans of the company.

Weaknesses

Intensive working capital operations
The operations of the company are working capital intensive, evident from the high gross current assets (GCA) of 261 days. The high GCA days are mainly attributable to debtor days which stood elevated at 223 days in FY2025. The debtor days appear to be on a higher side on account of significantly higher sales generated in the last quarter of the financial year. The company extends a credit period of 180 days to its receivables, which is attributable to the prolonged transportation cycle (90 -120 days). On the other hand, majority of the procurement is done on cash basis, which increases the reliance of the company on working capital limits. Therefore, the average bank limit utilization for the company stood moderate at 75 percent for the last eight months ended November 2025.

Customer and geographical concentration risk
UIEHPL has been exposed to concentration risk from the customers with more than 90 percent of the revenue being constituted from the top 10 customers. Along with this all of its customers are situated in African countries which are prone to economical risk. Any imbalances or political instability in the economy of these countries can negatively impact the operations of UIEHPL. The company exports good to African countries such as Nigeria, Burkina Faso, Mali, Mozambique, etc which have lower credit rating. None of the debtors of UIEHPL are backed by letter of credit from the banks so a risk of bad debts prevails. However, the last standing relationship with its customer has benefitted the company and there have been no instances of receivable defaults till date.
Acuite believes that going forward customer concentration and geographical concentration risk is a key rating monitorable

Rating Sensitivities

Further elongation of working capital cycle leading to stretch in liquidity.
Improvement in scale of operations while maintaining profitability.
Any political instability in customer geograohy leading to negative impact on operations
Significant increase in debt levels impacting the financial risk profile

Liquidity Position

Adequate

UIEHPL has been generating sufficient net cash accruals (NCA) of Rs. 13.12 Cr against maturing obligations of Rs. 0.55 Cr. Going forward, NCAs are expected to remain in the range of 14 - 16 Cr against repayments of Rs. 0.59 - 0.85 Cr in FY2026 and FY2027. Further, current ratio stood adequate at 1.40 times on March 31, 2025. Additionally, the average bank limit utilization stood at 75 percent for the last eight months ended November 2025. The company had an unencumbered cash and bank balance of Rs. 0.81 Cr on March 31, 2025.

Outlook: Positive

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	304.77	307.00
PAT	Rs. Cr.	10.29	8.10
PAT Margin	(%)	3.38	2.64
Total Debt/Tangible Net Worth	Times	1.38	1.10
PBDIT/Interest	Times	3.47	2.76

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
04 Oct 2024	Letter of Credit	Short Term	10.00	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	100.00	ACUITE BBB- \| Stable (Reaffirmed)
	Dropline Overdraft	Long Term	4.00	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	1.00	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Cash Credit	Long Term	20.00	ACUITE BBB- \| Stable (Assigned)
25 Sep 2023	Letter of Credit	Short Term	10.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	100.00	ACUITE BBB- \| Stable (Assigned)
	Dropline Overdraft	Long Term	4.00	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	1.00	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
CENTRAL BANK OF INDIA	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A3 \| Reaffirmed
CENTRAL BANK OF INDIA	Not avl. / Not appl.	PC/PCFC	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	125.00	Simple	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
Associate 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.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.