Established track record of operations and experienced management.
Established in 1995 SIL has backed by experienced management of over two decades of industry knowledge. The company is headed by Mr. Devendra Kumar Mantri, Mrs. Tanuja Mantri and Mr. Shashankdhar Mantri. Acuité believes that the experienced promoters and the company’s long standing in the industry will continue to aid the company in maintaining healthy relations with its reputed customers and suppliers.

Steady scale of operations albeit decline in margin
The company’s revenue increased to Rs 88.01 Cr. in FY2024 as against Rs 72.06 Cr. in FY2023, thereby registering an y-o-y growth of 12%. Further, the company has achieved revenues of around Rs.104.64 Cr. up to March 2025 (Prov.). The increase in revenue in FY2024 is because of higher realisations from load body for trucks and due to healthy demand from Tata Motors Ltd and Omax Autos Ltd.  The Company had earlier started an e-rickshaw by brand of Texaa but have presently scrapped that product.
The EBITDA margin for the Company has declined to 5.47% in FY2024 as compared to 7.18% in FY2023 due to rise in material costs and increase in sub-contract costs for manufacturing load body for trucks that could not be fully passed on to customers. The Profit After Tax (PAT) margin also decreased significantly from 2.00% in FY2023 as compared to 0.40% in FY2024, likely impacted by increased depreciation for new capex and increase in interest costs.
The company’s Return on Capital Employed (ROCE) also declined to 6.24% in FY2024, down from 10.02% in FY2023. Acuite believes that the company’s scale of operations will remain on similar levels in the near to medium term.

Moderate working capital management
The company has moderate working capital cycle as evident from gross current assets (GCA) of 111 days for FY2024 and 145 days for the FY2023. Debtor days stood at 42 days in FY2024, up from 60 days in FY2023. The Company provides a 30 days credit period to Omax Autos Ltd and gets its bills discounted for sales to Tata Motors Ltd. The inventory period stood at 62 days in FY2024 from 70 days in FY2023 due to nature of business where Company needs to maintain both raw materials and finished goods. Against this, the creditor days stood at 58 days in FY2024 from 72 days in FY2023. Acuité believes that the working capital operations of the company will remain at the similar levels over the near term.

Highly competitive and fragmented nature of industry
The company is operating in a highly competitive and fragmented industry with large number of organized and unorganized players present in the market which limits the bargaining power of the company. However, the risk is mitigated to an extent on account of established track record of operations, experienced management and long-standing relationship with Tata Motors Ltd.

Customer Concentration Risk
SIL generates almost 85% of its revenues from sale of auto Components to Tata Motors Ltd and Omax Autos Ltd. This induces customer concentration risk and limits the bargaining power against these players. In the absence of any fixed contractual agreement with them, the Company remains exposed to the risks related to the changes in procurement plans of its customers and might impact its revenue profile. However, the company intends to include more customers in its revenue profile to mitigate this risk over the medium term.