Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has reaffirmed its long-term rating of ‘ACUITE B’ (read as ACUITE B) on Rs. 18.00 Cr. bank facilities of Silverpoint Press Private Limited (SPPL). The outlook is ‘Stable’.
Rationale for Rating The rating reaffirmation reflects the stable scale of operations and moderation in profitability margins. The rating remains constrained by company’s below-average financial risk profile, working capital-intensive nature of operations, and exposure to price fluctuations and intense industry competition. However, the rating draws support from the promoters’ extensive experience and company’s long operational track record.
About the Company
Incorporated in 1988, Silverpoint Press Private Limited (SPPL) is engaged in the business of commercial printing. The company’s registered office is in Mumbai and has its printing plant in Navi Mumbai. The company caters to various industries such as corporate houses, hospitality, pharmaceutical, banking and finance, advertising agencies as well as creative artists, photographers and designers. The current directors of the company are Mr. Shabbir Taher Muchhala, Mr. Daniel Shabbir Muchhala, Mrs. Ayman Taher Muchhala and Mrs. Sarah Shabbir Muchhala.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of SPPL to arrive at the rating.
Key Rating Drivers
Strengths
Established track record of operations along with experienced management SPPL was incorporated in the year 1988. The directors of the company have been engaged in the business line for more than three decades. The extensive experience of the directors has helped in establishing healthy relationships with its customers and suppliers. The clientele profile includes reputed clients like Reliance Industries, Indian Hotels Company Ltd, Axis Bank, GM Modular, Welspun, Sony Entertainment, etc. Currently, the production capacity of printing machines is 2,58,000 sheets in 24 hours. Acuité believes that the company will benefit from the experience of the directors along with a healthy relationship with its customers and suppliers.
Moderate scale of operations The revenue of the company stood in the similar range at Rs.43.27 crore in FY25 as against Rs.38.35 crore in FY24. In FY2026 (Est.) the company has booked a revenue of Rs.44.7 crore. The operating profit margin of the company declined and stood at 10.07 percent in FY25 as against 12.33 percent in FY24. Further, the PAT margin stood at 7.10 per cent in FY25 as compared to (0.46) per cent in FY24. The improvement in PAT margin in FY2025 is majorly due to the other income which includes the sale of machinery. Acuité believes that the ability of scale its operations with stable margins shall be a key rating sensitivity.
Weaknesses
Below Average Financial Risk Profile The company’s financial risk profile is below average marked by its negative net worth, negative gearing and low debt protection metrics. The tangible net worth of the company stood improved however remained negative at Rs. (7.98) Cr. as on March 31, 2025, as against Rs. (10.99) Cr. as on March 31, 2024. The company’s gearing stood at (4.59) times as on March 31, 2025, as against (3.37) times in March 31, 2024. The total debt stood at Rs.36.62 crores as on March 31, 2025, consists of long-term borrowings of Rs.8.24 crores, unsecured loans of Rs.16.21 crores and short-term debt obligations of Rs.12.18 crores. The interest coverage ratio (ICR) stood at 2.53 times in FY25 as against 1.44 times in FY24. The debt service coverage ratio (DSCR) stood at 0.45 times in FY2025 as against 0.97 times in FY2024. The Net Cash Accruals to Total Debt (NCA/TD) of the company stood at 0.12 times for FY2025 as compared to 0.04 times for FY2024. Acuité believes that the financial risk profile of the company is going to improve in near to medium terms on account of accretion of profits into reserves.
Intensive Nature of Working Capital Operations The working capital management of the firm is intensive marked by gross current assets (GCA) of 171 days in FY2025 as against 202 days in FY2024, driven by debtor and inventory days along with high other current assets. The inventory days stood at 47 days in FY25 as against 60 days in FY24, pertaining to the inventory of paper and ink to be maintained by the company of around 45-60 days. The debtor days stood at 88 days in FY25 as against 96 days in FY24. The creditor days stood at 39 days in FY2025 as against 44 days in FY2024. The company generally receives a credit period of around 60-90 days from its suppliers. Acuite believes that the working capital cycle will remain intensive in near to medium terms.
Susceptibility of profitability to volatility in raw material prices along with intense competition
The key raw materials required by the company are printing paper and ink. Its operating profitability remains vulnerable to fluctuations in the prices of these key inputs. The printing industry is highly fragmented and competitive due to small initial investment and low complexity of operations, resulting in a large number of unorganized players in the market. This limits the bargaining power of moderate players like SPPL with suppliers and customers.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Consistent improvement in operating income with revenue above Rs.55 crores
Improvement in financial risk profile with positive net worth and coverage indicators with DSCR above 1.5 times.
Potential triggers (individual or collective) for a downward rating action:
Deterioration in operating performance with decline in revenues and profitability with revenue falling below Rs.30 crores.
Deterioration in financial risk profile or elongation in the working capital cycle impacting debt serviceability.
Liquidity Position
Poor
The company has poor liquidity position marked by insufficient cash accruals of Rs.4.21 crore in FY2025 as against its maturing debt obligations of Rs.12.67 crore for the same period. To meet its debt obligations, the promotors had infused funds FY25. Going forward, the cash accruals of the company are estimated to remain in the range of around Rs.2.00-3.50 crores annually during FY2026 & FY2027 as against total repayment obligations of less than Rs.1.00 crore for the same period. The average utilisation for the fund-based facility is moderately high at ~86.87 percent for the last 12 months ended December’ 2025. Furthermore, the company maintains unencumbered cash and bank balances of Rs. 0.25 crore as on March 31, 2025. The current ratio stood at 1.20 times as on March 31, 2025.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
43.27
38.35
PAT
Rs. Cr.
3.07
(0.18)
PAT Margin
(%)
7.10
(0.46)
Total Debt/Tangible Net Worth
Times
(4.59)
(3.37)
PBDIT/Interest
Times
2.53
1.44
Status of non-cooperation with previous CRA (if applicable)
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
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