| Long track record of operation and experienced management
The group has a long execution track record of 10 years in the plastic industry and is one of the leaders in the manufacturing of tarpaulin in the eastern part of the country. The promoter of the group Mr. Krishna Chandra Mondal, Mr. Mainak Mondal, Mr Bimal Paul and Mr Kamal Paul possesses more than a decade of experience in the plastic and polymers industry. The group has a long presence in this sector and has established a healthy relationship with customers for more than a decade.
Moderately Healthy Financial Risk Profile:
The group’s financial risk profile is marked by moderate net worth, low gearing and healthy debt protection metrics. The tangible net worth of the group increased to Rs.64.42 Cr. in FY 2025 from Rs. 59.08 Cr. as on FY2024 due to accretion of reserves. Total debt stood at Rs.54.88 crore in FY 2025 as against Rs.55.88 crore in FY 24. Their debt majorly comprises of short term debt. The gearing of the group stood below unity 0.85 times in FY25 as against 0.95 times as on FY2024. Debt protection metrics though slightly moderated but still stood comfortable with ICR and DSCR stood at 4.21 times and 2.91 times in FY 25 as against 4.53 times and 3.34 times in FY 24. Tol/TNW and debt/EBITDA stood at 1.07 times and 2.55 times in FY 25 as compared to 1.12 times and 2.35 times in FY 24. Acuité believes that going forward the financial risk profile of the group will remain moderately healthy over the medium term, with no debt funded capex plans.
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| Decline in scale of operation with improvement in margin:
The group’s revenue declined by 34.23% to Rs.180.21 crore in FY25 from Rs.274.01 crore in FY24 due to slower order movement in the HDPE pipe segment, further impacted by election-related disruptions and labour shortages, along with lower price realization linked to volatile crude oil prices. Despite this, the group achieved Rs.130.06 crore in 8MFY26 and has an order book of Rs.113 crore as of December 2025, supporting expectations of slightly better performance in the medium term. Profitability improved with operating margins rising to 12.02% in FY25 from 8.67% in FY24 owing to reduced raw material costs and direct sourcing from the principal company rather than local distributors to avail quantity-based discounts, while PAT margin also strengthened to 3.70% in FY 25 from 3.20% in FY 24 due to lower finance costs. However, movement in topline and volatility in raw material prices will remain key monitorable.
Intensive Working Capital Management:
The Group’s working capital cycle remained intensive in FY25, with GCA days increasing to 173 days from 93 days in FY24, largely due to elongated inventory holding. Inventory days rose to 156 days in FY25 from 86 days in FY24, driven by a buildup of finished goods at Rs.33.63 crore (FY25) against Rs.24.04 crore (FY24), primarily on account of slow-moving orders, which the management indicates have been sold in Q1 FY26. Debtor days also increased to 28 days in FY25 from 11 days in FY24, in line with the average customer credit period of 25–30 days, further contributing to the stretched GCA cycle. Creditor days also increased to 31 day in FY 25 as against 2 days in FY 24 driven by year end purchase. Average credit period with their supplier are 15 to 20 days Acuité believes the Group’s working capital intensity is expected to improve over the medium term supported by the management’s continued focus on inventory monitoring and optimization.
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