­Extensive experience of promoters and established relation with reputed clients:
GSTPL is an associate of the Cyklop Group, Germany, one of the leading global players in the packing systems and materials. GSTPL inherent business strengths gained through the long track record and technical expertise of the promoters - Mr. A. Narasimhan, Mr Hemant Lajpal and Mr. M. Mani, who have over 2 decades of experience in the packing machinery industry. This helped GSTPL to build a healthy relationship with its suppliers and customers. Its clientele includes reputed entities like Tata Steel Limited, Steel Authority of India Limited, Saint Gobain India Private Limited, Jindal United Steel Limited, Mahalaxmi Industries Services, MPIL Steel Structure Limited, Bhushan Power & Steel Limited, amongst others. Acuité believes that GSTPL wil continue to benefit from the established track record, experienced promoters over the medium term.

Improving scale of operations with range bound operating margins:
The company recorded moderate year-on-year growth of 4.74% in FY2025, with total revenues reaching Rs. 354.69 crore, up from Rs. 338.65 crore in FY2024.  Improvement in revenue is primarily attributed to increased volume of steel straps and seals. Despite of improvement in volume during FY2025, the revenue has improved only by 4.74% due to lower realizations for steel straps and seals. Additionally, the company registered Rs.233.83 Cr during the 8MFY2026 as compared to Rs 237.06 Cr in 8MFY2025. In terms of profitability, operating margins declined marginally and stood at 4.19% in FY2025, compared to 4.50% in FY2024. The operating profit margins remained range bound between 4 to 4.5 percent over the past 3 years. However, the power incentives from the government are expected to save the power cost to some extent. Acuite expects, GSTPL’s revenue to improve further over the medium term on account of the increased production capacity, securing high margin order.

Moderately intensive working capital operations:
­The company’s working capital cycle remains moderate, with gross current assets increasing to 167 days in FY2025 from 135 days in FY2024, primarily due to a stretched receivable cycle and inventory holding of 62 days and 58 days, respectively, compared with 68 days and 35 days in FY2024. The company extends a 30–60-day credit period to customers while availing 45–60 days from suppliers, and creditor support of 64 days in FY2025 (FY2024: 57 days) only partially offsets the overall requirement. As a result, working capital intensity remains elevated.  The fund-based limits were utilized at an average of ~88.37 percent over the past 12 months ending November 2025. Acuite believes, the working capital operations of GSTPL wil remain moderate intensive  on the back of it nature of business.

Moderate financial risk profile
GSTPL’s financial risk profile remains moderate, supported by a net worth of Rs.52.63 Cr as on March 31, 2025, up from Rs.50.55 Cr in the previous year, driven by profit accretion. However, gearing (debt to equity) deteriorated  and stood at  2.23 times and TOL/TNW to 3.20 times in FY2025, compared with 1.73 times and 2.67 times in FY2024. Total debt increased to Rs.117.49 Cr in FY2025 from Rs.87.53 Cr in FY2024, primarily on account of higher short-term debt utilisation. Debt protection metrics remained moderate with debt service coverage ratio (DSCR) 0.99 times  and interest coverage ratio (ICR) at 1.62 times and Debt/EBITDA deteriorating to 7.03 times in FY2025 from 5.19 times in FY2024. Acuité expects the financial risk profile to improve gradually over the medium term, supported by scale expansion and the absence of any debt-funded capex.

Susceptibility of profitability to volatility in raw material prices
GSTPL’s raw materials and consumables (majorly steel) account for over 70-75 percent of its product cost. Thus, GSTPL’s profitability margins are exposed to fluctuation in steel prices which are commoditized in nature