Press Release

Press Release

March 02, 2026

MANI JEWEL
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.00	ACUITE BBB \| Stable \| Assigned	-
Bank Loan Ratings	30.00	ACUITE BBB \| Stable \| Reaffirmed	-
Total Outstanding	50.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs. 30.00 Cr. bank facilities of Mani Jewel. The outlook remains 'Stable.'
Acuité has also assigned the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs. 20.00 Cr. bank facilities of Mani Jewel. The outlook is 'Stable.'

Rationale for reaffirmation
The rating reaffirmation reflects MJ's stable scale of operations and moderate financial risk profile. Further, the rating also draws comfort from the established track record of operations of the firm and its experienced management. However, these strengths are partially offset by the declining profitability and exposure to regulatory risks in the gems and jewellery industry.

About the Company

Incorporated in 2003, Mumbai based Mani Jewel (MJ) is engaged in manufacturing of diamond studded gold jewellery. The firm has its manufacturing facility located in Surat. The firm's operations are managed by Chetan Sojitra, Minal Sojitra, Divya Sojitra and Minaxi Sojitra.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone financial and business risk profile of MJ to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations
MJ was established in 2003 and is presently managed by members of the Sojitra family, namely Mr. Chetan Sojitra, Ms. Minal Sojitra, Ms. Divya Sojitra, and Ms. Minaxi Sojitra. The promoters have been involved in the gold and diamond-studded jewellery manufacturing industry for over two decades. Their long-standing industry presence has enabled the company to develop strong and durable relationships with its customers as well as suppliers. The firm services a well-recognised client base, including several leading jewellery chains.

Moderate financial risk profile
The financial risk profile of MJ is marked moderate with growing networth, low gearing and adequate debt coverage metrics. The tangible networth stood at Rs. 76.04 Cr. on March 31, 2025 supported by growth through profit accretions. Further, with reducing debt borrowings, the gearing continues to remain below unity at 0.45 times on March 31, 2025 (0.52 times in PY). The TOL/TNW improved marginally to 1.06 times in FY2025 from 1.38 times in FY2024. The Debt-EBITDA levels stood moderate at 1.81 times on March 31, 2025 (1.88 times in PY). Additionally the interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood comfortable at 4.71 times at 2.08 times respectively in FY2025.
The financial risk profile of the firm is expected to improve over the medium term on account of no significant debt funded capex plans.

Moderate working capital operations
The operations of the firm are marked moderate with gross current assets (GCA) of 126 days in FY2025 (145 days in PY). These are mainly driven by the receivable collection period, which stood at 95 days on March 31, 2025. Additionally inventory holding period stood at 27 days on March 31, 2025. On the other hand creditor days stood at 48 days in FY2025. Therefore, reliance on working capital limits stood moderate at 64.39 percent for the last seven months ended January 2026.

Weaknesses

Declining profitability amid increasing topline
The firm recorded a 10 percent growth in its topline, which stood at Rs. 388.11 Cr. in FY2025 from Rs. 352.53 Cr. in FY2024. Further, the revenue for 10M FY2026 stood at Rs. 395.73 Cr. This revenue growth is driven by the increased realization prices due to the high gold price, however, the overall sales volumes have declined. Further, the operating margin stood declined at 4.73 percent in FY2025 from 5.26 percent in FY2024, primarily due to increasing in the input costs.
Going forward improvement in the profitability margins while sustaining revenue growth will be a key rating sensitivity.

Presence in highly competitive & fragmented industry with exposure to regulatory challenges
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. The firm 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 favorable supplier credit terms provide partial mitigation for manufacturers operating on thin margins.

Inherent risk of capital withdrawal in a partnership firm
The firm is susceptible to the inherent risk of capital withdrawal given its constitution as a partnership. The partners had withdrawn significant funds in FY2024, which had led to decline in the overall networth in FY2024 from FY2023. Any further significant withdrawal from the partner’s capital having a negative bearing on the financial risk profile of the firm shall be a key rating sensitivity.

Rating Sensitivities

Restriction in working capital elongation
Improvement in profitability margins while sustaining revenue growth
Deterioration in the financial risk profile leading to stretch in the liquidity

Liquidity Position

Adequate

The adequate liquidity position of the firm is supported by the sufficient net cash accruals of Rs. 14.69 Cr. against repayment obligations of Rs. 5.01 Cr. in FY2025. Going forward, the NCAs are expected to remain in the range of Rs. 16 – 18 Cr. annually against repayment obligation of Rs. 7 - 8 Cr. for FY2026 and FY2027 cumulatively. Further, the current ratio stood healthy at 2.62 times on March 31, 2025. The company also had an unencumbered cash and bank balance of Rs. 3.03 Cr. on March 31, 2025. Additionally, the average bank limit utilization stood at 64.39 percent for the last seven months ended January 2026 providing cushion in the form of undrawn limits.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	388.11	352.53
PAT	Rs. Cr.	11.64	12.40
PAT Margin	(%)	3.00	3.52
Total Debt/Tangible Net Worth	Times	0.45	0.52
PBDIT/Interest	Times	4.71	4.95

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

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

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
02 Dec 2024	Term Loan	Long Term	3.16	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	6.28	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	1.40	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	1.82	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	8.81	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	6.16	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	2.37	ACUITE BBB \| Stable (Reaffirmed)
04 Sep 2023	Cash Credit	Long Term	6.28	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	1.75	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	2.37	ACUITE BBB \| Stable (Assigned)
	Cash Credit	Long Term	6.16	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	13.44	ACUITE BBB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.16	Simple	ACUITE BBB \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	9.95	Simple	ACUITE BBB \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.05	Simple	ACUITE BBB \| Stable \| Assigned
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.28	Simple	ACUITE BBB \| Stable \| Reaffirmed
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Term Loan	30 Sep 2019	Not avl. / Not appl.	10 Oct 2032	1.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	30 Jun 2025	Not avl. / Not appl.	31 Aug 2033	3.06	Simple	ACUITE BBB \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	30 Jun 2025	Not avl. / Not appl.	31 Oct 2033	8.55	Simple	ACUITE BBB \| Stable \| Reaffirmed
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Term Loan	27 Feb 2023	Not avl. / Not appl.	10 Mar 2028	3.45	Simple	ACUITE BBB \| Stable \| Assigned
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Term Loan	10 Nov 2019	Not avl. / Not appl.	10 Feb 2034	2.33	Simple	ACUITE BBB \| Stable \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	30 Jun 2025	Not avl. / Not appl.	28 Feb 2034	3.17	Simple	ACUITE BBB \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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