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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 52.00 | ACUITE BB+ | Stable | Upgraded | - |
| Bank Loan Ratings | 1.50 | Not Applicable | Withdrawn | - |
| Total Outstanding | 52.00 | - | - |
| Total Withdrawn | 1.50 | - | - |
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Rating Rationale |
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Acuité has upgraded the long-term rating to 'ACUITE BB+' (read as ACUITE double B plus) from ‘ACUITE BB’ (read as ACUITE double B) on the Rs. 52.00 crore bank facilities of Laxmi Dia Jewel Private Limited (LDJPL). The outlook is 'Stable'.
Further, Acuité has withdrawn its long-term rating on Rs. 1.50 Cr. bank facilities of Laxmi Dia Jewel Private Limited (LDJPL) without assigning any rating as the instrument is fully repaid. The rating has been withdrawn on account of the request received from the company and No Due Certificate (NDC) received from the banker.
Rationale for Upgrade: The rating upgrade considers the improved business risk profile of the company, marked by an upward trend in the operating income which is expected to continue in FY2026. The rating also considers company’s long operational track record, experienced management, moderate financial risk profile and adequate liquidity position. However, the rating is constrained by the company’s working capital intensive operations and susceptibility to regulations and competition in the gems and jewellery industry.
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| About the Company |
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Laxmi Dia Jewel Private Limited (LDJPL), incorporated in 1992, is engaged in manufacturing of diamond studded and gold jewellery for both retail as well as wholesale segment. The company sells its jewellery under the brand name 'Cygnus Bran'. It is promoted and managed by Mr. Jatinkumar Gajera along with Mr. Mitesh Gajera. Its manufacturing plant is located at Kandivali, Mumbai.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
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Acuité has considered the standalone business and financial risk profiles of Laxmi Dia Jewel Private Limited (LDJPL) to arrive at this rating.
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| Key Rating Drivers |
| Strengths |
| Experienced management and long track record of operations
The company is engaged in the manufacturing of gold and diamond-studded jewellery and has established long-standing relationships with reputed clients such as Titan Company Limited and Reliance Retail. The promoters of LDJPL have been associated with the gems and jewellery industry for over four decades. Their extensive industry experience and strong credibility have supported the company in maintaining a robust business profile. Acuite expects the company to sustain its business risk profile, aided by its experienced leadership and well-established market presence. Improvement in scale of operations and profitability The revenue from operations shows improvement from Rs. 346.51 Cr. in FY2024 to Rs. 441.60 Cr. in FY2025. The improvement is driven by increase in repetitive orders from key clients such as Titan Company Limited, Kalyan Jewellers India Limited etc and execution of orders from new customers. Further, the margins of the company improved and stood at 3.78 percent in FY2025 against 3.00 percent in FY2024. However, the PAT margins of the company stood at 1.21 percent in FY2025 against 1.23 percent in FY2024. The company has recorded revenues of Rs. 420.00 crore as of 7 March 2026 (in FY26) and is expected to close the fiscal year with revenues in the range of Rs. 440.00– Rs. 450.00 crores. Acuite believes, the operating performance of the company would improve in the medium term on account of steady demand. Moderate financial Risk Profile The company’s financial risk profile remained moderate financial risk profile marked by its moderate net worth, comfortable gearing and debt protection metrics. The net-worth of the company improved and stood at Rs. 134.53 Cr. in as on March, 31, 2025 as against Rs. 129.18 Cr. in March, 31, 2024 supported by growth through profit accretions. The total debt of Rs. 89.37 Cr. as on March 31, 2025 includes unsecured loans from promoters/director of Rs. 43.61 Cr. and working capital borrowings of Rs. 45.76 Cr. The debt-to-equity ratio stood at 0.66 times as on March, 31, 2025 as against 0.38 times as on March, 31, 2024. The interest coverage ratio (ICR) stood at 3.22 times in FY2025 as against 4.17 times in FY2024. The debt service coverage ratio (DSCR) stood at 2.00 times in FY2025 as against 2.04 times in FY 2024. Further net cash accruals (NCA) improved to Rs. 7.84 Cr. in FY2025 as against Rs. 6.20 Cr. in FY2024. The total outside liabilities to total net worth (TOL/TNW) stood at 1.33 times as on March 31, 2025 as against 1.44 times as on March 31, 2024. The Debt-EBITDA levels stood moderate at 6.16 times as on March 31, 2025 as against 4.78 times in the March 31, 2024. Acuite believes, the financial risk profile of the company would remain moderate over the medium term on the back of absence of debt funded capex and steady accruals. |
| Weaknesses |
| Working capital intensive operations
The company’s operations remained working capital intensive as reflected in gross current asset (GCA) days of 234 days as on March 31, 2025 as against 299 days as on March 31, 2024. The GCA days are driven by high inventory and debtor days. The inventory days stood at 157 days as on March 31, 2025 as against 189 days as on March 31, 2024. The inventory days are on the higher side as the firm, being a jewellery retailer, must maintain sufficient stock to ensure immediate service to customers. The debtor days stood at 76 days as on March 31, 2025 as against 100 days as on March 31, 2024. The elongated gross operating cycle is supported by adequate credit allowed by suppliers. The creditor days stood 69 days as on March 31, 2025 as against 162 days as on March 31, 2024, on the back of advance payment terms with suppliers, resulting in lower creditor days. Further, the reliance on bank limit utilisation stood high at ~95.63 percent six months ended February, 2026. Acuite expects the working capital operations to likely remain in similar range in the near to medium term owing to the nature of operations. Presence in highly competitive & fragmented industry with exposure to regulatory challenges The Company operates in a highly competitive and fragmented manufacturing environment marked by price sensitivity, evolving design requirements from wholesalers and retailers, and strict compliance norms. Exposure to gold and diamond price volatility continues to be a key operational risk, though hedging practices and favourable supplier credit terms provide partial mitigation for manufacturers operating on thin margins. The domestic jewellery sector in the B2B space remains exposed to regulatory risks that can significantly affect procurement and supply chain operations, as seen in past instances such as restrictions on bullion imports, mandatory hallmarking and GST implementation. Demand from B2B clients is also influenced by seasonality linked to festivals, auspicious periods and retailer stocking cycles. Profitability is susceptible to volatility in commodity prices and forex risk Gold being a commodity, price is influenced by various factors including demand and supply. The price fluctuation risk could have adverse impact on company’s earnings. However, the risk of gold price fluctuation is mitigated to some extent by way of procuring gold on daily basis on the actual sale made by the company. The company hedges its forex risk through entering into forward contracts. However, the margins remained exposed to market conditions, fluctuating forex rates and product prices to an extent. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Adequate |
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The company’s liquidity position is adequate, marked by net cash accruals (NCA) against the maturing debt obligations. The company generated sufficient net cash accruals of Rs. 7.84 Cr. in FY2025 against Rs. 1.65 Cr. repayment obligation of during the same period. Going ahead, the company is expected to generate net cash accrual in the range of Rs. 7.00 - Rs. 9.00 Cr. during FY2026-2027. The working capital management of the company is marked by GCA days of 234 days in FY2025 as against 299 days in FY2024 leading to high reliance on working capital limits. The average working capital utilisation of the company stood higher at 95.63 percent for last six months ended February 2026. The current ratio stands at 2.07 times as on March 31, 2025, as against 1.53 times as on 31 March 2024. The cash balance stood at Rs. 0.23 Cr. as on March 31, 2025.
Acuite expects that the liquidity of the company is likely to be adequate over the medium term on account of adequate cash accruals. |
| Outlook |
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Stable
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 441.60 | 346.51 |
| PAT | Rs. Cr. | 5.34 | 4.26 |
| PAT Margin | (%) | 1.21 | 1.23 |
| Total Debt/Tangible Net Worth | Times | 0.66 | 0.38 |
| PBDIT/Interest | Times | 3.22 | 4.17 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable
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| Any other information |
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None
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| Applicable Criteria |
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• 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 |
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