Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 29.00 ACUITE BBB | Stable | Assigned - RBI
Bank Loan Ratings 0.00 1.00 - ACUITE A3+ | Assigned RBI
Total Outstanding 0.00 30.00 - - -
Total Withdrawn 0.00 0.00 - - -
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
 
Rating Rationale

Acuité has assigned the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and a short term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.30.00 crore bank facilities of Goldy Precision Technologies Private Limited (GPTPL). The Outlook is 'Stable'.

Rationale for rating assigned
The rating assigned derives strength from GPTPL's healthy financial risk profile, characterized by a comfortable capital structure and adequate debt protection metrics. The company's  liquidity position, marked by steady cash accruals, manageable debt repayment obligations, availability of healthy liquid investments, and financial support from promoters, also supports the rating. The rating is further supported by the extensive experience of the promoters and management team in the automotive component manufacturing industry and  established track record of operations spanning over three decades.
The above strengths are, however, constrained by the company's modest scale of operations, fluctuations in operating margins due to changes in raw material costs and inability to easily pass on the cost to its customers, and its intensive working capital operations, driven by high inventory requirements arising from the long lead time associated with imported raw materials.

About the Company
GPTPL is a Nashik, Maharashtra-based precision engineering and automotive component manufacturing company incorporated on 3 April 1991 as Goldy Press Tools Private Limited. The company was subsequently renamed Goldy Precision Stampings Private Limited and later Goldy Precision Technologies Private Limited in April 2024. The company manufactures high-precision automotive components, including transmission parts, shock absorber valves, gaskets, brake system components, and other engineered products catering to automotive OEMs and Tier1 suppliers. The company has its manufacturing facilities located in the MIDC industrial area at Satpur, Nashik.
The current directors of the company are Mr. Mohan Ramkrishna Raikar, Mr. Jayesh Mohan Raikar, Mrs. Manisha Raikar and Mr. Siddhesh Mohan Raikar.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach
­Acuite has considered the standalone business and financial risk profile of Goldy Precision Technologies Private Limited to arrive at the rating.
 
Key Rating Drivers

Strengths
Extensive experience and established track record
GPTPL has been engaged in the manufacturing of precision automotive components since its incorporation in 1991. Over the years, the company has developed capabilities in the production of suspension and transmission components and maintains established relationships with customers and suppliers in the automotive industry.
The company is promoted by Mr. Mohan Ramkrishna Raikar, who has been associated with the business since inception. The promoters' experience in the automotive component industry has supported the company's product development, manufacturing operations, and business growth over the years.

Healthy financial risk profile
The company's capital structure continued to remain healthy, with net worth improving to Rs. 83.06 crore as on March 31, 2026 (Prov.), from Rs. 75.89 crore as on March 31, 2025, driven by the steady accretion of profits to reserves. Total debt increased moderately to Rs. 31.80 crore as on March 31, 2026 (Prov.), from Rs. 28.62 crore as on March 31, 2025, primarily to support working capital requirements and ongoing investments in machinery and equipment. The debt profile includes interest-free unsecured loans from promoters amounting to Rs. 9.54 crore, reflecting the promoters' continued financial support to the business. Consequently, the company's overall gearing remained stable at 0.38 times as on March 31, 2026 (Prov.), similar to the level reported a year earlier.
Despite the moderate increase in debt levels, debt protection metrics remained healthy, with the debt service coverage ratio (DSCR) and interest coverage ratio (ICR) standing at 3.00 times and 6.08 times, respectively, as on March 31, 2026 (Prov.), indicating adequate debt servicing capability.

Weaknesses
Moderate scale of operations with fluctuating profitability margins
The company's scale of operations remains moderate, with operating income of Rs. 126.64 crore in FY2026 (Prov.), despite registering steady growth over the past few years. Further, the company's profitability remains susceptible to fluctuations in foreign exchange rates, which in turn affect the cost of imported raw materials. Given the long procurement and production cycle, with lead time ranging from 6 to 9 months, increase in input costs is not passed on to customers immediately. Although the company generally recovers such cost escalations through periodic price revisions and supplementary invoices, the time lag in cost pass-through exerts pressure on profitability during periods of adverse cost movements.
Accordingly, the company's operating performance has witnessed volatility, with the PBILDT margin declining to 14.87% in FY2026 (Prov.) from 18.78% in FY2025, while the PAT margin moderated to 6.80% from 10.45% during the same period. The company's ability to sustain profitability amid fluctuations in raw material prices and foreign exchange movements remains a key monitorable.

Intensive working capital operations
The company's working capital requirements remain moderately intensive, as reflected by its gross current asset (GCA) days of 184 days in FY2026 (Prov.), primarily driven by high inventory and receivable levels. GPTPL maintains inventory of around 90 days, supported by customer order visibility of nearly three months. Although the processing cycle for suspension components is short at approximately two days, inventory levels remain elevated due to the long lead time for imported raw materials, which can take up to six months from order placement to receipt. Accordingly, inventory days remained high at 95 days in FY2026 (Prov.), largely in line with the previous year.
Further, receivables remained elevated, with debtor days increasing to 72 days in FY2026 (Prov.) from 67 days in FY2025, owing to the credit period extended to customers. The company generally provides credit of up to 90 days to its customers, while payments to suppliers are made within 90 days from the bill of lading date, providing partial support to its working capital requirements.

Cyclicality associated with automotive industry along with presence in a competitive industry
GPTPL performance remains inherently linked to the cyclical nature of the automotive sector, where demand for auto components is directly influenced by vehicle sales, exposing suppliers to inherent industry fluctuations and the operational resilience of OEMs. Further, the automobile industry primarily moves with larger economic cycle, customer preferences, government policies, etc. Additionally, the group operates in a highly competitive industry wherein there is presence of a large number of players in the organized as well as unorganized sectors. Also, the industry is characterized by low entry barriers due to low technological inputs and easy availability of standardized machinery for the production. While the organized segment primarily caters to the OEM segment, the unorganized segment mainly caters to the replacement market and to tier II and III suppliers.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
  • Significant improvement in the scale of operations with growing profitability margins lead to generation of net cash accruals above Rs 30 Crs
  • Improvement in working capital operations
Potential triggers (individual or collective) for a downward rating action:
  • Continuous decline in operating margins below 12% or net cash accruals falling below Rs. 10 Cr
  • Increase in debt levels impacting the financial risk profile
  • Significant increase in working capital cycle
Liquidity Position
Adequate
The company's liquidity position is adequate, supported by healthy cash generation and comfortable debt servicing indicators. GPTPL reported net cash accruals of Rs. 14.47 crore in FY2026 (Prov.), which remained sufficient to meet its relatively low repayment obligations of Rs. 2.55 crore during the year. Going forward, the company's net cash accruals are expected to remain healthy in the range of Rs. 15-20 crore, providing adequate coverage for its modest annual debt repayments of less than Rs. 2 crore. The liquidity profile is further supported by the promoters demonstrated ability to infuse funds into the business whenever required. The company maintained a healthy current ratio of 1.89 times as on March 31, 2026 (Prov.). The average utilization of fund-based working capital limits remained moderate at ~75% during the 6-month period ended June 2026.
Further supporting liquidity are readily available liquid investments in the form of mutual funds amounting to approximately Rs. 11 crore, along with cash and cash equivalents of Rs. 3.48 crore as on March 31, 2026 (Prov.), providing an additional cushion to meet operational and contingent funding requirements.
 
Outlook - Stable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 26 (Provisional) FY 25 (Actual)
Operating Income Rs. Cr. 126.64 120.28
PAT Rs. Cr. 8.62 12.57
PAT Margin (%) 6.80 10.45
Total Debt/Tangible Net Worth Times 0.38 0.38
PBDIT/Interest Times 6.08 8.48
Status of non-cooperation with previous CRA (if applicable)
­None
 
Any other information
­None
 
Applicable Criteria
• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
Note on complexity levels of the rated instrument


Rating History :
­Not Applicable
 

Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
DBS BANK INDIA LIMITED (ERSTWHILE DBS BANK LIMITED) Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 24.00 Simple ACUITE BBB | Stable | Assigned
Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A3+ | Assigned
SHINHAN BANK Not avl. / Not appl. Working Capital Demand Loan (WCDL) Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BBB | Stable | Assigned
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

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