Acuité has combined and consolidated the financial and business risk profiles of Shri Ram Multicom Private Limited with its subsidiaries, Shri Ram Mall Private Limited, Shri Ram Residency Private Limited, Shri Ram Ozone Retail Private Limited, Shri Ram Precision, Ozone Logistics Private Limited, Jalan Inter Continental Hotels Private Limited, Shri Ram Precisions and Sarga Hotel Private Limited and others (Refer Annexure 2). This is on account of common promoters, holding-subsidiary relationship, fungibility of cash flows and corporate guarantee provided by Shri Ram Multicom Private Limited to certain subsidiaries and other inter corporate guarantees. The group is herein referred to as the Shri Ram Ozone group.
 

Long track record of operations and experienced management

The group enjoys an established presence in its core markets of West Bengal and Jharkhand, enabling consistent customer traction across its hospitality, mall, dealership of jewellery, distribution of TMT bars and real estate/commercial estate businesses.
Initially, the group started as clearing & forwarding agent and development of residential and commercial projects. The group is managed by Mr. Pradeep Kumar Sonthalia, who possesses vast experience of over two decades in the industry. Currently, his son, Mr. Nityanand Sonthalia is actively involved in the day-to-day operations of the group. Acuite believes the group’s established market presence, long track record of operations and vast experience of the promoters in these industries would continue to support the group’s business risk profile going forward.

Diversified business with major contribution from distribution of TMT bars

The group’s major revenue stream continues to originate from the distribution of TMT bars manufactured by Electrosteel Steels Limited and Jindal Steel and Power Limited. This trading business is undertaken through Ozone Logistics Private Limited, contributed nearly 55% of the group’s total revenues in FY25. In addition, the group generates healthy revenues from its jewellery division, operating Tanishq, Mia and Caratlane showrooms across Kolkata, Ranchi and Dhanbad basis 10MFY26.
The group also benefits from steady rental income through leased commercial properties in Jharkhand, which have maintained consistently high occupancy levels and have witnessed moderate rental growth over the years due to price escalations. The group has also leased out the retail area of its Fairfield by Marriott hotel to reputed brands, ensuring stable cash inflows.
Furthermore, the group operates Taj Vivanta and Fairfield by Marriott, Kolkata, strategically located at premium locations. With the acquisition of Sarga Hotel Private Limited, the group took over the operations of The Westin Kolkata from FY24, further expanding its hospitality footprint taking the room key tally to 683 rooms. Overall, the revenue of the group stood at Rs.1468.75 Cr till January 2026. 
The group remains in a capex phase to scale up its business profile and is constructing a mall and a hotel presently. Acuité believes that although the group’s debt levels remain considerably high, the stable cash flows from its leased properties, coupled with the strong contribution from steel trading activities are expected to support steady cash accruals and help maintain a stable business risk profile over the medium term.

Moderate Financial Risk Profile
The financial risk profile is moderate marked by improving networth, high gearing and comfortable debt protection metrics. The tangible net worth of the group stood at Rs.750.26 Cr as on March 31, 2025, as against Rs.696.02 Cr. as on March 31, 2024, due to accretion to reserves. The debt protection metrices of the group is marked by Interest coverage ratio (ICR) of 2.91 times and debt service coverage ratio (DSCR) of 1.41 times for FY2025. Debt/EBITDA stood at 5.07 times in FY25 as against 4.20 times in FY24 due to hotel and mall business. Acuite is of the opinion that the debt protection metrics are expected to remain on similar levels due to ongoing or addition of capex. The gearing of the group stood at 1.36 times in FY25 as against 1.15 times in FY24. The net cash accruals to total debt (NCA/TD) stood moderate at 0.11 times in FY2025. Acuite believes that the financial risk profile of the group is expected to remains moderate due to debt funded capex plans over the medium term and moderate debt protection metrics.

Efficient working capital cycle
The working capital cycle of the group is marked by Gross Current Assets (GCA) of 129 days on 31st March 2025 as compared to 99 days on 31st March 2024 on account of surplus cash and bank balances as the company maintains at least 10% of debt as cash and bank balances. The inventory days stood at 55 days on 31st March 2025 as compared to 45 days as on 31st March 2024 due to higher stock levels maintained in response to gold prices. Also, the debtor days stood comfortable at 7 days as on 31^st March 2025 as against 8 days on 31st March 2024. The group has a cash and carry model of business. Acuite believes that the working capital cycle of the group will remain on similar level as evident from efficient collection mechanism over the medium term.

Ongoing capex plans of the group
To expand the business profile of the group, it is currently undertaking 4 projects– mall construction in Shri Ram Multicom Private Limited (SRMPL) by the name of Platinum Mall , mall development in Patna in JV with PS Srijan Group under Bailey Properties Private Limited (BPPL) by the name of Baileys Square, a hotel development in Shri Ram Multicom Private Limited by the name of Ozone High Street (under Taj brand) and acquisition of 6 floor of Westin hotel which was not a part of NCLT acquisition in Sarga Hotel Private Limited. The cumulative project cost is expected to be around Rs.500 Cr. to be funded by debt and internal accruals (not inclusive of mall development cost under BPPL which will be reflected in investments of ~Rs.100 Cr.). The expected timeline of completion of the projects- hotel development under SRMPL and mall development under Bailey Properties Private Limited – is by end of October 2026 (FY2027). However, since the group undertakes project developments on an ongoing basis, timely completion of the projects as well as addition of new projects which may affect the group's financial risk profile, will remain a key monitorable.

Intense competition and inherent cyclical nature of the steel industry
The downstream steel industry remains heavily fragmented and unorganised. The company is exposed to intense competitive pressures from large number of organised and unorganised players along with its exposure to inherent cyclical nature of the steel industry. Additionally, prices of raw materials and products are highly volatile in nature.

• Timely execution and stabilization of large debt funded capex plans of the group

• DSCR more than 2 times

• Debt/EBITDA below 3 times

• Weak hotel occupancy/ARR <75% due to market downturn

• DSCR remains <1.0x

• Debt to equity more than 2 times