Long track record of operations and experienced management
PIPL was incorporated in 1980 by Mr. A. K. Puri, Mr. Sanjay Puri, and Mrs. Anjali Puri. Currently, the company is managed by Mr. Sanjay Puri, Mrs. Anjali Puri, Mr. Archit Puri, and Mr. Shubham Puri, who together have over three decades of experience in the business. This experience has helped PIPL build strong, long-term relationships with its customers and suppliers. PIPL sources its raw materials such as wheat from the Food Corporation of India (FCI) and other raw materials like split chickpeas (chana dal) for besan from local farmers in Punjab. The company mainly sells its products to local wholesalers. Acuité believes that PIPL will continue to use its management's experience to maintain and further develop healthy relationships with its customers and suppliers.

Efficient Working Capital Management
Working capital management continues to be efficient,  there has been a slight improvement in the working capital cycle. Gross Current Assets (GCA) stood at 61 days in FY2025 (Provisional), marginally lower than 64 days in FY2024. The inventory holding period decreased to 28 days from 34 days, primarily due to stocking requirements used for the new unit. However, the receivables cycle remained efficient, with debtor days at 29 days in FY25 (prov.) slightly 27 days in the previous year. Further, the bank limit utilisation stood moderate at ~75 per cent for six months ending September 2025. Acuite expects working capital operations to remain stable over the medium term, supported by an efficient collection mechanism and controlled inventory levels. The company’s ability to maintain low debtor days and manage inventory effectively continues to support its liquidity and operational efficiency.

Consistent growth in revenues albeit subdued profitability
The company has continued improvement in its revenues which stood at Rs. 581.67 Cr. in FY2025 (Prov.) from Rs. 430.54 Cr. in FY2024, marking a growth of approximately 35.10 per cent. This increase is driven by higher price realizations and volume growth, supported by the commissioning of a new flour mill unit in February 2024. The expansion has enabled the company to cater to increased demand and improve production efficiency. The operating profit margin has decline’ to 1.58 per cent In FY2025 (Prov.) from 4.93 per cent in FY2024. The decline is attributable to increase in raw material employee cost and selling expenses (this mainly includes vehicle maintenance & loading expenses) as a per cent of sales. Further for 5MFY2026 the company has generated revenue of Rs. 274.25 Cr. while EBITDA margin stood at ~4 per cent. Company reported PAT level losses to the tune of Rs. 6.61 Cr mainly due to higher depreciation costs in FY25 as the capex made for flour mill got operational in March 2024.

Moderate Financial Risk Profile
The financial risk profile of the company remains moderate, supported by a healthy increase in net worth and stable gearing levels. The tangible net worth declined to Rs. 54.93 Cr. as on March 31, 2025 (Prov) from Rs. 61.54 Cr. in the previous year, primarily due to losses of current year of Rs.6.61 Cr. The total debt of the company stood at Rs. 111.13 Cr. in FY2025 (prov.) and Rs. 108.35 Cr. in FY2024. The total debt comprises of Rs. 33.19 Cr. long term debt, Rs. 6.35 Cr. USL from directors, Rs. 63.93 Cr. short term debt and Rs. 7.66 Cr. current portion of long-term debt. Gearing deteriorated marginally and stood at 2.02 times as on March 31, 2025 as compared to 1.76 times as on March 31, 2024, indicating prudent debt management. The Total Outside Liabilities to Tangible Net Worth (TOL/TNW) ratio improved to 2.47 times from 1.90 times, reflecting a stronger capital base. Debt protection metrics also deteriorated with the Interest Coverage Ratio (ICR) stood at 1.73 times as compared to 6.43 times respectively in FY25 (prov.) and Debt Service Coverage Ratio stood at 0.84 times and 2.86 times respectively in FY24. The company continues to benefit from financial support extended by the promoters through unsecured loans, which adds to its financial flexibility.

Fragmented and competitive industry buoyed by geographical concentration risk
Jammu & Kashmir continues to be the company’s key market, which is expected to continue in the future also exposing it to geographical concentration risk. The Indian flour milling industry is highly fragmented with organized and small regional players. Local mills are facing competition from branded packaged atta manufacturers due to increased awareness of hygiene and convenience. The market comprises a few national players, a large number of regional players, and private-label brands with varying geographical presence. Multiple players in the segment selling a commoditized product limit the pricing capability of the company.