Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 100.00 ACUITE BB | Stable | Upgraded -
Total Outstanding 100.00 - -
Total Withdrawn 0.00 - -
 
Rating Rationale

Acuité has upgraded the long-term rating to 'ACUITE BB' (read as ACUITE double B) from ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs.100.00 crore bank facilities of Star Global Multi Ventures Private Limited. The outlook is "Stable".

Rationale for upgrade
The rating upgrade factors the sustained improvement in the scale of operations, along with benefits derived from extensive experience of management & established track record. The company recorded net revenue of Rs. 779.24 crore in FY2025, from Rs. 606.17 crore in FY2024.  The operating margin improved to 2.27% in FY2025 from 1.92% in FY2024. The company's financial risk profile is moderate, marked by improving net worth, comfortable gearing, and debt protection metrices. 
However, the above strengths are partly offset by intensive working capital operations marked with Gross Current Assets (GCA) days which stood at 110 days as of March 31, 2025, from 94 days as of March 31, 2024 along with highly intense competition along with agricultural risks and fluctuations in raw material prices

About the Company

Star Global Multi Ventures Private Limited (SGMVPL), a Delhi-based company incorporated in 2012, is engaged in the milling and trading of Basmati and non-Basmati rice. The company procures raw materials from the local market and, after processing, exports the rice to countries such as Iraq, UAE, Saudi Arabia, Germany, Turkey, etc. The promoters, Mr. Anurag Goel and Mr. Pradeep Shukla, have over two decades of experience in the rice industry.
 
Unsupported Rating
­­Not Applicable
 
Analytical Approach
­­­Acuité has considered the standalone financial and business risk profile of Star Global Multi Ventures Private Limited (SGMVPL) to arrive at the rating.­
 
Key Rating Drivers

Strengths

­Extensive Experience of Management & Established Track Record
The company has a track record of around 14 years, having commenced operations in 2012. The promoters possess extensive experience and an established track record in the rice business. This helped the company establish healthy relationships with a customers for regular orders as well as with suppliers, ensuring a stable supply of raw materials, which has helped maintain healthy capacity utilization levels. Additionally, they are supported by a team of experienced professionals.

Improving Scale of Operations
The company recorded revenues of Rs. 779.24 crore in FY2025, up from Rs. 606.17 crore in FY2024. The revenue growth is attributed to a higher order book and effective order execution. As of September 2025, the company achieved Rs. 308.42 crore in revenues. The current order book stands at Rs. 100.38 crore, expected to be completed within 3-6 months, with additional orders anticipated over the same period. The operating margin slightly increased to 2.27% in FY2025 from 1.92% in FY2024, driven by increased operations and better absorption of fixed costs, as the orders had good margins. The Profit After Tax (PAT) margin remained steady at 1.23% in FY2025, same as FY2024. The company's Return on Capital Employed (ROCE) improved to 14.85% in FY2025 from 12.31% in FY2024. Acuité believes that the company is likely to improve its operational scale and profitability margins over the medium term.


Weaknesses

Working Capital Intensive Nature of Operations
The company's working capital management is intensive marked with Gross Current Assets (GCA) days which stood at 110 days as of March 31, 2025, from 94 days as of March 31, 2024. This is due to extended credit periods provided to buyers. Debtor days increased to 32 days in FY2025 from 21 days in FY2024, while inventory days rose to 49 days from 38 days. Creditor days remained relatively stable at 30 days in FY2025 from 32 days in FY2024. The average credit terms are approximately 15-30 days. Acuité believes that the working capital cycle will continue to be intensive due to the nature of operations.
­
Agricultural Risks and Fluctuations in Raw Material Prices
As an agricultural product, crop production is susceptible to the vagaries of the monsoon and labour availability. Prices remain volatile due to fluctuating demand, government regulatory controls such as MSP, and other market dynamics. Furthermore, the company's performance is linked to the rice industry, which experiences cyclical demand and price volatility.

Intense Industry Competition
The rice industry is highly fragmented, with both organized and unorganized players offering similar products. Due to the low value addition of the product, the pricing power of millers is limited. Consequently, the company faces competition from regional players, leading to intense price pressures that can impact profitability margins

Rating Sensitivities

  • Movement in revenue and profitability

  • Working capital cycle
 
Liquidity Position
Adequate

The company maintains adequate liquidity, supported by steady net cash accruals of Rs. 10.21 crore in FY2025, with absence of nil long-term debt repayment obligations for the same year. Cash and bank balances stood at Rs. 3.26 crore in FY2025. The current ratio was 1.43 times in FY2025. Acuité believes that the company's liquidity is likely to remain adequate over the medium term, backed by steady accruals. , nil long-term debt repayments, and despite a low current ratio.
 
Outlook: Stable
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Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 779.24 606.17
PAT Rs. Cr. 9.55 7.47
PAT Margin (%) 1.23 1.23
Total Debt/Tangible Net Worth Times 0.69 0.61
PBDIT/Interest Times 4.45 6.00
Status of non-cooperation with previous CRA (if applicable)
Not Applicable
 
Any other information
None
 
Applicable Criteria
• 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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
11 Nov 2024 Warehouse Receipt Financing Long Term 25.00 ACUITE BB- | Stable (Upgraded from ACUITE B)
Proposed Long Term Bank Facility Long Term 20.00 ACUITE BB- | Stable (Upgraded from ACUITE B)
Warehouse Receipt Financing Long Term 40.00 ACUITE BB- | Stable (Upgraded from ACUITE B)
Warehouse Receipt Financing Long Term 15.00 ACUITE BB- | Stable (Upgraded from ACUITE B)
22 May 2024 Warehouse Receipt Financing Long Term 37.50 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
Proposed Long Term Bank Facility Long Term 62.50 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
22 Feb 2023 Warehouse Receipt Financing Long Term 37.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 62.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
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Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BB | Stable | Upgraded ( from ACUITE BB- )
H D F C Bank Limited Not avl. / Not appl. Warehouse Receipt Financing Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE BB | Stable | Upgraded ( from ACUITE BB- )
INDUSIND BANK LIMITED Not avl. / Not appl. Warehouse Receipt Financing Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BB | Stable | Upgraded ( from ACUITE BB- )

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