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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 1550.00 | ACUITE A+ | Stable | Reaffirmed | - |
| Bank Loan Ratings | 114.43 | - | ACUITE A1+ | Reaffirmed |
| Total Outstanding | 1664.43 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE A+’ (read as ACUITE A plus) on the Rs.1550.00 Cr. bank facilities and the short-term rating of ‘ACUITE A1+’ (read as ACUITE A one plus) on the Rs.114.43 Cr. bank facilities of Shree Ramkrishna Exports Private Limited (SREPL). The outlook is ‘Stable’.
Rationale for rating The rating reaffirmation considers the improvement in operating performance during FY26 backed by growth in demand for high value natural diamonds (2 carats and above) post lowered scale of operations in FY25 due to consumer shift towards lab grown diamonds coupled with lower production yield and realization for cut & polished diamonds (CPD). The rating continues to factor the established track record of company, experienced management and healthy financial risk profile. However, these strengths are partially offset by moderate working capital operations and business being susceptible to geopolitical tensions as majority of the exposure is towards the export market. Also, the business remains susceptible to tariffs and ongoing competition from lab grown diamonds. Hence going ahead, the ability of the company to sustain its scale of operations along with stable level of margins will remain a key rating monitorable. |
| About the Company |
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Incorporated in 2012, Shree Ramkrishna Exports Private Limited (SREPL), is a Mumbai based company engaged into processing and trading of cut & polished diamonds (CPD), rough diamonds and diamond studded jewellery. The company has presence in the domestic as well as international markets having nearly 80% export exposure. The 2 manufacturing units of SREPL are located at Surat and registered office is at Bharat Diamond Bourse (BDB) - BKC, Mumbai. The directors of the company are Mr. Shreyans Govindbhai Dholakia and Mr. Rahul Nagjibhai Dholakia.
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| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profiles of SREPL to arrive at the rating. |
| Key Rating Drivers |
| Strengths |
| Experienced management and established track record
The promoters of SREPL Mr. Govindbhai Dholakia and his family are engaged in the business of cut & polished diamonds (CPD) for over five decades, thus commanding established position in the gems and jewellery industry. The promoters are well supported by second generation – Mr. Rahulbhai Dholakia, Mr. Shreyans Dholakia and Mr. Jayantibhai Narola. The company has a diversified customer base in USA, UAE, Europe, Hong Kong, etc. among other countries. Also, SREPL is a sight holder with leading miners such as De Beers and Rio Tinto which ensures steady supply of rough diamonds. Acuité believes that the company will continue to benefit from its established presence in the diamond industry, and the extensive promoter’s experience. Improved scale of operations in FY26 The revenue of SREPL moderated in FY25 to Rs.7,612.47 Cr from Rs.8,117.55 Cr in FY24. This decline was on account of shift in consumer buying towards the lab grown diamonds and due to lower realizations for cut & polished diamonds (CPD) during FY25. Further, the margins also lowered on account of lower yield from the rough diamonds purchased against the diamonds polished. The EBITDA margin stood at 3.67% in FY25 (5.55% in FY24) and the PAT margin stood at 2.47% in FY25 (3.77% in FY24). Additionally, the grading charges also stood higher in FY25 which includes the GIA certification charges and the same depends on the carats of diamond. However, starting from first half of FY26, the company shifted its focus towards diamonds having value of 2 carats and above which had a growing demand, resulting which the top line stood improved till February 2026 and stood at ~Rs.9,030 Cr with improved margins in the range of ~5%. Moreover, given the headwinds faced in the export market w.r.t. geopolitical tensions and tariff implications, the impact of the same on operating performance remains a key rating monitorable. Healthy financial risk profile The financial risk profile of SREPL is marked by healthy net worth, low gearing and strong debt protection metrics. The tangible net worth though moderated due to share buyback of Rs.400 Cr but stood healthy at Rs.2,822.99 Cr as on 31st March 2025 against Rs.3,255.31 Cr as on 31st March 2024. The total debt of the company for FY25 stood at Rs.739.98 Cr (Rs.332.93 Cr in FY24). The borrowing profile includes working capital limits and no long-term borrowings. Moreover, the gearing (debt-equity) increased yet remain below unity at 0.26 times as on 31st March 2025 (0.10 times as on 31st March 2024). Further, the debt protection metrics also stood healthy with interest coverage ratio of 15.16 times in FY25 (14.24 times for FY24). The Total outside Liabilities/Total Net Worth (TOL/TNW) stood comfortable at 0.33 times as on 31st March 2025 and the Debt/EBITDA stood at 2.42 times as on 31st March 2025. Acuité believes that the financial risk profile of the company is expected to remain healthy given the steady net cash accruals and absence of any debt funded capex plan. |
| Weaknesses |
| Moderate working capital operations
The working capital operations of SREPL are moderate as evident from gross current asset (GCA) of 160 days as on 31st March 2025 (153 days as on 31st March 2024). The inventory levels stood at 120 days in FY25 (130 days for FY24). The debtor days stand comfortable at 25 days in FY25. Further, the creditor days also reduced to 10 days in FY25 (15 days in FY24) as the company makes advance payments to some of its suppliers. Moreover, the average utilization for the fund-based facilities remained moderately utilized at ~75% for the last 6 months ended January 2026. Tariff and competition from lab grown diamond (LGD) with exposure to regulatory challenges The cut-and-polished diamond industry has continued to face headwinds over the last two to three years, driven by subdued international demand and the rising popularity of lab-grown diamonds (LGDs). These factors have weighed on realizations and pressured margins. Export volumes also remain impacted to some extent by the imposition of US tariffs—prompting manufacturers to curtail production and diversify into newer markets across Asia, Europe and the Middle East. Nevertheless, strong domestic demand, particularly for lightweight, affordable, and gold-accented jewellery, has supported the overall performance. Moreover, the company operates in a fragmented and competitive manufacturing landscape characterized by high price sensitivity, rapidly changing design expectations from buyers, and stringent compliance requirements. Exposure to volatility in gold and diamond prices remains a critical operational risk, though manufacturers benefit partially from hedging mechanisms and favourable supplier credit terms. |
| ESG Factors Relevant for Rating |
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SREPL has taken up various initiatives for social and environmental causes. The company's agricultural and allied industry initiatives include seminars and workshops on best practices in agriculture for the farming community, and the establishment of help desks in remote talukas like Lathi in Gujarat to provide free consulting to farmers on beneficial government policies. Further, SREPL has sponsored water management initiatives like funding the construction of 100 dams in the Saurashtra region which aims to increase the agricultural production in this region. In addition, the company is also paving path towards a net zero India- two of the company's flagship crafting facilities are LEED Platinum certified and have achieved net zero certification in partnership with the Global Network for Zero as of May, 2024. On the governance front, the company has adopted requirement of corporate governance from provision of Companies Act 2013. The board of directors comprises of individuals having expertise and experience in the industry. Further, the company has developed an ethical business policy to ensure a healthy governance mechanism.
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Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Strong |
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Liquidity position of SREPL is strong as reflected from sufficient net cash accruals of Rs.217.84 Cr. in FY25 (Rs.335.63 Cr. during FY24) against no debt repayment. The company has unencumbered cash and bank balances of Rs.225.80 Cr. as on 31st March 2025 and the current ratio stood healthy at 3.39 times as on 31st March 2025. Going forward, firm is expected to generate cash accruals in the range of Rs.270.00-300.00 Cr. over the medium term. Moreover, the average utilization for the fund-based facilities remained moderately utilized at ~75% for the last 6 months ended January 2026.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 7612.47 | 8117.55 |
| PAT | Rs. Cr. | 188.00 | 305.65 |
| PAT Margin | (%) | 2.47 | 3.77 |
| Total Debt/Tangible Net Worth | Times | 0.26 | 0.10 |
| PBDIT/Interest | Times | 15.16 | 14.24 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable. |
| Any other information |
| None. |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
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