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 BB+’ (read as ACUITE double B plus) on the Rs. 50.00 Cr. Proposed non-convertible debentures facility of MAXVALUE Credits and Investments Limited. The outlook is 'Stable'.
Rationale for rating.
The rating reflects the company’s adequate capitalisation and improving asset quality profile, supported by growth in disbursements and stabilisation in the portfolio. The company reported a net worth of Rs.108.82 Cr. as on March 31, 2026 (Prov.), with continued capital support from internal accruals. Asset quality has shown improvement with GNPA declining to 4.84% in FY26 (Prov.) from 9.51% in FY25, and NNPA improving to 3.36% from 6.60% over the same period. Additionally, the company has witnessed improvement in collection efficiency to ~88.97% in FY26, along with an increase in on-time portfolio to 92% from 82% in FY25, which provides some comfort. However, the rating is constrained by the company’s moderate and volatile profitability profile, with PAT at Rs.4.73 Cr. in FY26 (Prov.) as compared to Rs.3.73 Cr. in FY25, remaining low relative to its scale of operations (AUM: Rs.437.83 Cr. as on FY26(Prov.)). The company also has a track record of historically elevated asset quality indicators, notwithstanding recent improvement. Further, the company’s moderate scale of operations and reliance on borrowings (Rs.373.52 Cr.)with gearing at 3.43x as on FY26 (Prov.) constrain its financial flexibility. Acuite believes that the company’s ability to sustain improvements in asset quality, scale up its portfolio profitably, and maintain stability in earnings profile will remain key monitorables.
About the company
Incorporated in 1995, Maxvalue Credits And Investments Limited is engaged in gold loan providing a wide range of fund-based services including Gold, Vehicle, Traders Loan, and Consumer Loan. The registered office is in Thrissur, Kerala. The directors include Miss. Saraladevi Mecheriparambil, Mr. Valakadavil Krishnan Gopinathan, Mr. Kottarath Nandakumar, Mr. Christo George, Mr. Vellamparambil Raman Manoj, Mr. Perinthalakkat Parameswaran Narayanan, Mr. Roy Johnson Vellanaikkaran and Mr. Sadanandan Prasanna Kumar.
Unsupported Rating
Not Applicable.
Analytical Approach
Acuité has considered the standalone business and financial risk profile of Maxvalue Credits and investments Limited for the rating.
Key Rating Drivers
Strength
Strong Capitalisation and Improving Earnings Profile
The company’s credit profile is supported by its adequate capitalisation levels and improving operating performance, with net worth improving to Rs.108.82 Cr. as on March 31, 2026 (Prov.) from Rs.104.09 Cr. as on March 31, 2025. The company reported a PAT of Rs.4.73 Cr. in FY26 (Prov.) as compared to Rs.3.73 Cr. in FY25, indicating stabilisation in earnings post earlier volatility. Further, the company continues to maintain healthy net interest margins at 13.60% in FY26 (Prov.) vis-à-vis 11.80% in FY25, supported by a stable cost of borrowings and improving yield profile. The capital structure remains moderately leveraged (D/E: 3.43x as on FY26), providing a reasonable cushion to support incremental growth.
Improving Asset Quality with Strengthened Collections and Secured Portfolio Shift
The company has demonstrated improvement in asset quality metrics in FY26 (Prov.), with GNPA declining to 4.84% from elevated levels of 9.51% in FY25, and NNPA improving to 3.36% from 6.60% over the same period. The improvement is supported by strengthened collection mechanisms, as reflected in collection efficiency improving to ~88.97% in FY26, along with a significant rise in on-time portfolio to 92% (FY26) from 82% in FY25. Additionally, the company is undertaking a strategic shift towards increasing the share of secured gold loans, which is expected to enhance portfolio liquidity, reduce credit risk volatility, and support stability in asset quality over the medium term.
Weakness
Moderate and Volatile Profitability Profile
The company’s profitability profile remains modest and vulnerable to credit costs, despite some improvement in FY26 (Prov.). The company reported a PAT of Rs.4.73 Cr. in FY26 (Prov.) as compared to Rs.3.73 Cr. in FY25, which continues to remain at relatively low levels vis-à-vis its scale of operations. The earnings profile has exhibited volatility in the recent past, with profitability being impacted by elevated provisioning requirements and limited operating leverage. Further, return indicators remain subdued, reflecting the company’s constrained ability to generate consistent internal accruals.
Historically Elevated Asset Quality with Limited Track Record of Stability
The company’s asset quality profile, while improving, continues to reflect historical volatility, with GNPA levels at 9.51% in FY25 reducing to 4.84% in FY26 (Prov.). Similarly, NNPA stood elevated at 6.60% in FY25 before improving to 3.36% in FY26 (Prov.). While the recent improvement is supported by better collections and write-offs, the asset quality metrics remain higher compared to similarly rated peers, and the sustainability of the improvement across cycles remains to be established.
Moderate Scale of Operations and Constrained Financial Flexibility
The company continues to operate at a moderate scale, with AUM at Rs.437.83 Cr. as on FY26 (Prov.), limiting its competitive positioning and operating leverage. The funding profile remains primarily reliant on borrowings, as reflected in total borrowings of Rs.373.52 Cr. and gearing at 3.43x in FY26 (Prov.), indicating a moderately leveraged capital structure. Additionally, the absence of regular external equity infusion constrains financial flexibility and limits the company’s ability to absorb stress during adverse credit cycles.
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
Significant growth in AUM and disbursements.
Significant improvements in profitability metrics
Potential triggers (individual or collective) for a downward rating action:
Deterioration in asset quality metrics, collection efficiency.
GNPA greater than 7 percent
Liquidity Position
Adequate
The company’s liquidity position remains adequate, supported by its comfortable capitalization profile and granular liability structure. As per the ALM statement dated March 31, 2026 (Prov.), total debt obligations stood at Rs.48.15 crore up to the one-year period against expected inflows of Rs.441.78 crore over the same period, resulting in a cumulative positive mismatch of Rs.336.90 crore up to one year. Further, the company reported total borrowings of Rs.373.52 crore and maintained a comfortable net worth of Rs.108.82 crore as on March 31, 2026 (Prov.), with a healthy CRAR of 32.06%. The company’s liquidity profile is also supported by the predominance of short-tenure gold loans in its portfolio, which facilitates regular cash flow generation and provides adequate cushion to meet its near-term repayment obligations.
Outlook - Stable
Other Factors affecting Rating
None
Key Financials - Standalone / Originator
Particulars
Unit
FY26 (Prov.)
FY25 (Actual)
Total Assets
Rs. Cr.
509.18
455.31
Total Income*
Rs. Cr.
81.05
64.96
PAT
Rs. Cr.
4.73
3.73
Net Worth
Rs. Cr.
108.82
104.09
Return on Average Assets (RoAA)
(%)
0.98
0.77
Return on Average Net Worth (RoNW)
(%)
4.44
3.65
Debt/Equity
Times
3.43
3.02
Gross NPA
(%)
4.84
9.51
Net NPA
(%)
3.36
6.60
*Total income equals Net Interest Income plus other income
Status of non-cooperation with previous CRA (if applicable):
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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