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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 31.20 | ACUITE BBB- | Stable | Assigned | - |
| Bank Loan Ratings | 77.00 | ACUITE BBB- | Stable | Reaffirmed | - |
| Bank Loan Ratings | 13.00 | - | ACUITE A3 | Reaffirmed |
| Total Outstanding | 121.20 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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ACUITE has reaffirmed its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs.90.00 Crore bank facilities of Mahalaxmi Polypack Private Limited (MPPL). The outlook is 'Stable'.
ACUITE has assigned its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.31.20 Crore bank facilities of Mahalaxmi Polypack Private Limited (MPPL). The outlook is 'Stable'. Rationale for Rating The rating factors in the experience management and established track record of operations since last three decades in the same industry. Further, the company has shown improvement in the scale of operations which stood at Rs. 455.07 Cr. in FY25 against Rs. 382.03 Cr. in FY24. Company has achieved the revenue of Rs. 396.71 Cr. in 11MFY26. In addition, the financial risk profile of the company is moderate marked by gearing of the company which stood at 1.12 times as on 31st March 2025 albeit below average which DSCR stood at 1.07 times as on 31st March 2025. The Company has a lean working capital cycle marked by GCA days which stood at 94 days in FY25. The above mentioned strengths are partly off-set by the volatility in raw material prices and forex fluctuations which will remain a key sensitive factor in near to medium term. |
| About the Company |
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Incorporated in 2005, Mahalaxmi Polypack Private Limited is engaged in manufacturing of PP/HDPE woven sack fabric/bags and FMB/Polymer Compound/ Colour master Batch/Yarn. The registered office in New Delhi. The directors include Mr. Deenanath Khandelwal, Mr. Kuldeep Khandelwal and Mr. Abhishek Khandelwal.
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| Unsupported Rating |
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Not applicable
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| Analytical Approach |
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Acuite has considered the standalone financial and business risk profiles of Mahalaxmi Polypack Private Limited to arrive at the rating.
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| Key Rating Drivers |
| Strengths |
| Experience management and established track record of operations
The company started its operations in the year 2007 and has a long track record of operations. Over the years, it has been able to successfully establish itself as a leading woven bag and fabric manufacturer with the help of experienced management. Further, the company benefits from the long-term experience of the promoters in this industry including key promoters who are Mr. Deenanath Khandelwal and Mr. Kuldeep Khandelwal and have more than three decades of experience in this field and oversee the overall operations of the company. Acuite believes that the long track record of business has enabled in developing established customer and supplier network. Improvement in scale of operations The company has witnessed the growth in the revenue from operations by ~19.12% which stood at Rs. 455.07 Cr. in FY25 against Rs. 382.03 Cr. in FY24. The improvement in revenue is due to increase in the volume sales. Operating margin of the company stood at 3.18% in FY25 against 2.89% in FY24. There is a slight improvement in the operating margin of the company which is due to the decrease in the raw material cost. The Net margin stood at 0.98% in FY25 against 0.37% in FY24. Company has achieved the revenue of Rs. 396.71 Cr. in 11MFY26. Acuite believes the company is expected to showcase an increase in the scale of operations along with improvement in margins in near to medium term. Moderate Financial Risk Profile The company has moderate financial risk profile marked by Total Tangible net worth stood at Rs. 66.58 Cr. as on 31st March 2025 against Rs. 62.09 Cr. as on 31st March 2024, increase in net worth is on account of profit accretion. Debt to Equity ratio stood at 1.12 times in FY25 against 1.01 times in FY24. Interest coverage ratio stood at 2.52 times for FY25 as against 2.09 times in FY24. Debt Service coverage ratio stood at 1.07 times for FY25 as against 0.85 times in FY24. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.31 times as on March 31, 2025 as against 1.43 times as on March 31, 2024. The company is currently undertaking capex of ~Rs. 6 Cr. in 2.5 MW solar power plant within its premises in FY26 and of ~Rs. 15 Cr. in a new warehousing facility in FY27, which will be funded through a mix of external debt and internal accruals. Acuite believes that financial risk profile of the company is expected to remain at similar levels over the medium term. Efficient working capital operations The working capital operations of the company is moderately efficient marked by GCA days of 94 days in FY25 against 111 days in FY24. There is an improvement in the GCA days due to the debtor days of the company which stood at 38 day in FY25 against 57 days in FY24 whereas inventory days of the company stood at 45 days in FY25 against 38 days in FY24. The creditor days stood at 7 days in FY25 against 27 days in FY24. Going forward, the working capital operations of the company is expected to remain at similar level over the medium term. |
| Weaknesses |
| Exposed to Volatility in the raw material prices fluctuations and foreign exchange fluctuations
The company faces several Weaknesses in the manufacturing of PP/HDPE woven sack fabric, bags, FMB, polymer compounds, colour masterbatch, and yarn, including a heavy dependency on fluctuating raw material prices, intense competition that pressures profit margins, and the need for constant technological upgrades to stay relevant. Additionally, stricter environmental regulations could increase operational costs, while supply chain vulnerabilities and labour shortages may disrupt production. Further, it is exposed to adverse fluctuations in foreign currency exchange rates. However, MPPL generally enters into forward contracts, which partially mitigate the forex risk. |
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 liquidity profile of the company is adequate. The net cash accruals of company stood at Rs. 7.49 Cr. in FY25 against the debt obligation of Rs. 6.57 Cr. for the same period. Current ratio stood at 1.38 times for FY25 against 1.37 times in FY24. The company has cash & bank position of Rs. 0.18 Cr. The average fund based bank limit utilization is at 92.93% and non-fund based bank limit utilization is at 64.64% for the 11 months’ period ending February 2026. Acuité believes that the liquidity position of the company will remain adequate on account of steady net cash accruals against matured debt obligations albeit debt funded capex plans over the medium term.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 455.07 | 382.03 |
| PAT | Rs. Cr. | 4.48 | 1.40 |
| PAT Margin | (%) | 0.98 | 0.37 |
| Total Debt/Tangible Net Worth | Times | 1.12 | 1.01 |
| PBDIT/Interest | Times | 2.52 | 2.09 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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| Any other information |
| None |
| 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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