Established track record of operations and experienced management
MCSMPL was incorporated in the year 1994. It’s Managing Director  Mr. Jayesh Shah has been associated with the company since its inception and has an experience of more than three decades in the industry and is ably assisted by an experienced second line of management. The extensive experience of the directors has helped the company to maintain  healthy relationship with its customers and suppliers.  The company's operating income declined  to Rs. 381.68 Cr. in FY2024, compared to Rs. 406.06 Cr. in FY2023. However, in FY2025(estimated) the operating income increased to Rs.415 Cr, the installed capacity and actual utilization has improved in FY2025, leading to better operating income. Despite decline in the revenue, the operating margin of the company marginally improved to 8.79 % in FY2024 from 8.40% in FY2023. The PAT margin stood at 3.95 percent in FY2024 as against 3.88 percent in FY2023.
Acuité believes that the company will continue to benefit from the extensive experience of the management along with a healthy relationship with its customers and suppliers.

Moderate Financial Risk Profile
The financial risk profile of the company is moderate marked by improving net worth, moderate gearing and debt protection metrics. The tangible net worth of the company improved and stood at Rs. 89.18 Cr. as on 31 March 2024 as against Rs. 74.10 Cr. as on 31 March 2023 due to accretion of profits to reserves. The gearing level marginally improved and stood at 1.20 times as on 31 March 2024 as against 1.40 times as on 31 March 2023. The Debt/ EBITDA stood at 2.86 times as on 31 March 2024 as against 2.90 times as on 31 March 2023. Total outside liabilities to Tangible net worth (TOL/ TNW) stood at 1.54 times as on 31 March 2024 as against 1.77 times as on 31 March 2023. The debt protection metrics are moderate where interest coverage ratio (ICR) stood at 4.06 times in FY2024 as against 4.82 times in FY2023. Debt service coverage ratio (DSCR) stood at 1.47 times in FY2024 as against 2.01 times in FY2023. Net Cash accruals / total debt (NCA/TD) ratio stood at 0.20 times in FY2024 as against 0.21 times in FY2023. The company further plans to expand its garment production capacity in FY2026. To facilitate this expansion, the company has allocated a total CAPEX of ~Rs. 10 Cr. for the purchase of plant and machinery, to be financed through a term loan of Rs. 7.63 Cr, with the remaining amount through internal accruals.
Acuité believes that the financial risk profile of the company will continue to remain moderate in near to medium term.

Moderately Intensive working capital nature of operations
The working capital management of the company is intensive in nature marked by increased Gross Current Assets (GCA) days to 125 in FY2024 as compared to 112 days in FY2023. The inventory days stood at 33 days in FY2024 as compared to 30 days in FY2023. The debtor days stood at 71 days in FY2024 as against 73 days in FY2023. Further, the creditor days stood at 21 days in FY2024 as compared to 17 days in FY2023. The average utilization of working capital limits remained moderate with average utilisation of fund-based limits at ~ 43.65% over the last twelve months ending April 2025.
Acuité believes that the working capital operations of the company will remain at similar levels given the nature of the industry over the medium term.

Highly fragmented and competitive industry and susceptibility of margins to raw material price fluctuation risk
The knitted garment industry in India is highly fragmented and competitive, marked by the presence of a large number of organised and unorganised players. MCSMPL is exposed to intense competition from both domestic players as well as the established players in the overseas market. The shifts in consumption patterns can also have an adverse impact on the operations of the company. Further, the profitability of the company is susceptible to fluctuations in the prices of raw materials – polyester, spandex and other consumables.