­­Experienced management and established track record of operations
Experienced management and established track record of operations DSEPL was originally established in July 1999 as a partnership company, and it later transitioned into a private limited company in 2008. The company is actively involved in processing and exporting various seafood products, boasting a solid track record spanning over two decades. Its promoters, Mr. Pranab Kumar Kar and Mr. Prabhat Kumar, bring over two decades of invaluable industry experience to the table. Acuite believes that the extensive expertise of the promoters has helped the company in fostering strong relationships with both suppliers and customers.

Healthy financial risk profile
The financial risk profile of the company is marked by moderate net worth, low gearing and comfortable debt protection metrics. The tangible net worth of the company stood at Rs. 18.51 Cr. as on FY2025 as compared to Rs. 17.41 Cr. as on FY2024. For FY2025, the gearing of the company stood below unity at 0.17 times from 0.34 times in FY2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) also increased to 0.55 times in FY2025 from 0.97 times in FY2024. The Interest Coverage Ratio (ICR) Increased to 6.25 times in FY2025 from 4.24 times in FY2024. Similarly, the Debt Service Coverage Ratio (DSCR) increased to 5.45 times in FY2025 from 3.98 times in FY2024.  Going forward, Acuité believes the financial risk profile of the company will remain comfortable on account of steady net cash accruals owing to stable profitability margins with no major debt funded capex plan over the near term.

Efficient Working Capital Management
DSEPL’s operations exhibit efficient working capital cycle, as indicated by its gross current asset (GCA) days of 71 days in FY2025 compared to 82 days in FY2024. Moreover, the debtor period of the company also stood at 20 days in FY2025 as compared to 49 days in the FY2024. Further, the inventory days of the company stood at 39 days in FY2025 as compared to 12 days in the FY2024. Acuité believes that the working capital operations of the firm will remain at the similar levels over the medium term.

­Reduced scale of operations but improved profitability margins
DSEPL’s turnover declined to Rs.55.79 crore in FY2025 from Rs.66.07 crore in FY2024. The dip in revenue was primarily due to the company’s inability to procure adequate raw materials during FY2025, coupled with its restricted capacity to meet customer demand following a change in the European customer’s procurement strategy. The profitability of the company witnessed improvement as operating profit margin rose to 4.89 percent in FY2025 as against 0.17 percent in FY2024. This increase in margin was on account on acquiring raw material at low cost. Acuite believes that with better year to date financial as reflected from sale of Rs. 52 Cr. by December 2025, the company is expected to have improved sales over the medium term on account of availability of raw material. The movement of operating performance would continue to remain a monitorable.

Navigating Regulatory Shifts and Competitive Landscape
The shrimp processing and export industry is characterized by fragmentation, with numerous small players, and a heavy reliance on shrimp farms for raw materials, which constrains bargaining power. Furthermore, the procurement price of shrimp is subject to fluctuations based on catch and availability during specific periods, resulting in the company’s exposure to price volatility. Additionally, since the entirety of the company’s revenue comes from exports, its credit risk profile is sensitive to fluctuations in forex rates. Moreover, the company faces risks related to changes in regulations and demand trends in client countries, including the possibility of antidumping duties being imposed by importing nation.