Resourceful promoters, experienced management and diversified geographical presence, albeit limited track record of operations
NHPL is promoted by Nagpur based ‘Navbharat’ Group. The group is an established name in the newsprint business. Promoted by the Maheshwari family, the Group is headed by Mr. Nimish Maheshwari who has an overall experience of over 30 years of leading the Group in publishing, paper manufacturing & real estate development. NHPL is a first venture of the Group in the medical devices industry. NHPL is owned and operated by his two sons Mr. Vaibhav Maheshwari and Mr. Raghav Maheshwari along with other family members. The promoters are ably supported by an experienced management team with an average industry experience of more than two decades. The company has diversified geographical presence. It sells across various states of Kolkata, Orissa, Assam, Bihar, MP and others in the domestic market and exports to Bhutan, Ghana, UAE, UK and others. Acuité believes that the NHPL will continue to benefit from the experience of its promoters and management team and diversified geographical presence over the medium term.
Improved scale of operations and moderation in profitability margins
The company have achieved a revenue of Rs. 96.21 Cr. in FY25(Provisional) against Rs. 64.24 Cr. in FY24. The increase of 49.78% is attributed to the increase the manufacturing capacity leading to increased sales. The EBITDA margins of the company stood at 14.24% in FY25(Provisional) against 12.80% in FY24. The increase in the operating margins was observed because of the slight decrease in the raw material. The raw material used by the company is medical grade plastics which is a crude oil derivative. The prices of crude oil were observed to remain above the mean levels during FY24; however correction was noticed during FY25. The PAT margins of the company stood at 4.02% in FY25(Provisional) against 4.71% in FY24. Going forward, the company is likely to improve the topline by sustaining profitability over the medium term on account of corrections noticed in raw material prices and increased production capacity. NHPL does not have any forex hedging policies for its export operations.
Moderate Financial Risk Profile
The financial risk profile of the company is moderate marked by tangible net-worth of Rs. 40.05 Cr. as on 31st March 2025(Provisional) against Rs. 36.18 Cr. as on 31st March 2024. The net worth also consists of unsecured loans treated as quasi equity worth Rs. 9.58 Cr. in FY25. The unsecured loans have been treated as quasi equity due to subordination clause of the banker’s stipulation. The total debt of the company is Rs. 67.66 Cr. as on 31st March 2025(Provisional) against Rs. 65.23 Cr. as on 31st March 2024. The gearing stands average at 1.69 times in FY25(Provisional) as against 1.80 times in FY24. Further, the interest coverage ratio of the company stood at 2.75 times in FY25(Provisional) as against 4.26 times in FY24. The debt service coverage ratio stood at 1.07 times in FY25(Provisional) as against 1.62 times in FY24. The DSCR has observed a decline because of the increased debt repayment obligations and the rising interest costs on the same with additional working capital requirement being fulfilled with the help of the increased cash credit limits by PNB from Rs. 4 Cr. to Rs. 9.5 Cr. The TOL/TNW stood at 2.21 times in FY25(Provisional) and the NCA/TD stood at 0.13 times in FY25(Provisional) as against 0.08 times in FY24. Acuité believes that the financial risk profile of NHPL is likely to remain moderate over the medium term.

Intensive Working Capital Operations
The working capital operations of the company remained intensive marked by GCA days which stood at 143 days in FY25(Provisional) as against 182 days as on as on 31st March 2024. The increase in the GCA days was observed because of slight increase in the debtor collection period. The inventory and debtor days of the company stood at 51 days and 66 days respectively as on 31st March 2025(Provisional) against 74 days and 62 days respectively as on 31st March 2024. The inventory days noticed a decline on account of better inventory management and increased export orders. On the other hand, the creditor days of the company stood at 69 days as on 31st March 2025(Provisional). The company has been trying to manage the working capital by maintaining better relations with the suppliers and getting better credit periods. Acuité believes that NHPL is likely to improve on account of better inventory management and better relations with the suppliers and customers.

Susceptibility of profitability margins to volatility in raw material prices
The company is primarily engaged into manufacturing of IV cannula and syringes. The key input material for the products is medical grade polymer resins, which is crude oil derivative. The price of this commodity is subject to volatility in line with those of global crude oil prices. This exposes the profitability margins of NHPL to fluctuations in raw material prices.