| Experienced management and long track record of operations
Himalay Cellular was established by Mr. Bhavin Thakkar and Mrs. Nirali Thakkar. Mr. Bhavin Thakkar has been involved in the consumer electronics trading business for the past 20 years. The management is also supported by the second generation, who are actively involved in the business. Further, the group has established relationships with leading suppliers like Inlead Electronics Pvt Ltd., Nikon India Pvt. Ltd., since over a decade. Acuité derives comfort from the long experience of the promoters and believes this will benefit the group going forward, improving its operating and financial performance.
Improving Scale of operation:
The group has achieved revenue of Rs. 165.97 crores in FY25 as compared to Rs. 150.01 crores in FY24 driven by mainly increased demand of mobile phones. Further the group has already achieved Rs.184.29 crores (after adjusting inter corporate transaction) in 11MFY26 which indicates medium term revenue growth. Further, the group has achieved slight improvement in operating margin to 2.35% in FY25 as against 2.15% in FY24 mainly driven by reduced advertising and promotional expense. Further, PAT margin also improved to 1.63% in FY25 from 1.23% in FY24, supported by lower finance costs. Acuité believes that the group’s operating performance is likely to improve over the medium term; however, the sustainability of profitability levels will remain a key monitorable.
Efficient Working Capital Management:
The working capital management of the group is marked efficient with GCA days stood at 47 in FY25 as against 50 days in FY24 mainly driven by improvement in inventory days. Inventory days stood at 8 days in FY25 as against 12 days in FY24. The debtor period stood at 37 days for FY2025 as against 36 days of FY2024 owing to efficient billing cycle. The group has to procure products on cash and carry model, so they don’t have any creditors. Acuité believes that the working capital cycle will remain efficient over the medium term on account of efficient collection mechanism and low inventory cycle.
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| Average Financial Risk Profile:
The Financial risk of the group marked average is supported by low net worth, moderate gearing and stable debt protection metrics. Their net worth stood at 9.35 crores in FY 25 as compared to 6.58 crores in FY 24. Total Debt of Rs. 12.79 crores in FY 25 comprise of long-term debt of Rs. 1.39 cores, channel financing loan of Rs. 0.98 Cr., short term debt of Rs. 9.43 crores and CPLTD of Rs.0.99 crores . Total gearing improved to 1.37 times in FY 25 as compared to 2 times in FY 24. Debt protection metrics stood comfortable in FY 25 supported by ICR and DSCR stood at 3.24 and 1.81 times. TOL/TNW and Debt/EBITDA ratio improved to 1.36 and 3.21 times in FY 25 from 2.25 and 4.05 times in FY 24. Acuite believes financial risk profile is likely to improve on account of absence of significant long-term borrowings, However, given the partnership structure, the risk of any significant capital withdrawal by partners will remain key monitorable.
Intense competition from other mobile handset brands:
The mobile handset market is characterized by intense competition from domestic and foreign players' viz. Samsung, Apple Iphone, Micromax, Lenovo, Vivo, etc. The performance of mobile phone retailers/dealers is also subject to technology changes and launch of new products. Around 85-90 per cent of group’s revenue comes from trading Oppo mobile handsets; hence its revenues are highly dependent on the performance of Oppo mobile phones.
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