| Experienced management and long track record of operations
Tanvirkumar and Co; formerly known as Milan jewellers has been in operation as a partnership firm since 1976. The firm is engaged in manufacturing and trading of polished diamonds and studded diamond & gold jewellery under the brand Moksh. The family has been into this business for over four decades. The firm was set up by Mr. Tanvir Kirtilal Chokshi and Mr. Kamlesh Jhaveri. Currently, Mr. Milan Choksi, Mr. Mihir Jhaveri, Mr. Shanay Choksi, and Mr. Nilesh Choksi are the key partners.
Acuite believes that firm will continue to benefit from its established presence in diamond industry and extensive experience of the partners along with a healthy relationship with reputed clientele.
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| Declining revenue along with low profitability
The firm's operating performance remains constrained by a decline in revenue and modest profitability. Operating income declined to Rs.154.21 Cr in FY2026 (Prov.) from Rs.188.54 Cr in FY2025, primarily on account of subdued demand in the diamond trading segment and continued industry headwinds. Although profitability witnessed marginal improvement, the EBITDA margin remained modest at 3.40 percent in FY2026 (Prov.) against 3.11 percent in FY2025, while the PAT margin improved to 0.22 percent from negative 0.04 percent during the same period. The firm continues to face margin pressures owing to the competitive nature of the diamond trading business. However, the gradual increase in the share of jewellery manufacturing activities, which offer relatively better value addition and margins, is expected to support profitability going forward.
Acuité believes the firm's operating performance is likely to remain modest over the medium term, notwithstanding the expected improvement in revenue mix.
Below average financial risk profile
The financial risk profile of the firm remains below average, marked by a modest net worth, moderate leverage and weak debt protection metrics. The tangible net worth stood at Rs.40.21 Cr as on 31st March 2026 (Prov.) as compared to Rs.41.60 Cr as on 31st March FY2025. The decline in net worth is attributable to capital withdrawal from partner’s capital. Although the total debt reduced marginally to Rs.56.61 Cr as on March 31, 2026 (Prov.) from Rs.58.81 Cr as on March 31, 2025, the gearing remained moderate at 1.41 times. Debt protection metrics continued to remain weak with interest coverage and DSCR at 1.28 times and 0.98 times, respectively, in FY2026 (Prov.). Further, Debt/EBITDA remained high at 10.01 times, reflecting the modest earnings base. The financial risk profile is further constrained by low profitability, intensive working capital requirements and dependence on external borrowings for funding operations. However, the absence of any significant debt-funded capex plans is expected to support the capital structure over the medium term.
Acuité believes the financial risk profile is likely to remain below average over the medium term.
Working capital intensive operations
The working capital operations of the firm remained intensive, as reflected by gross current asset (GCA) days of 294 days in FY2026 (Prov.) against 270 days in FY2025. The high GCA cycle is driven by the inherently elevated inventory and receivable holding requirements associated with the diamond trading business. Inventory days increased to 177 days in FY2026 (Prov.) from 144 days in FY2025, while debtor days stood at 116 days. Further, the firm's reliance on bank borrowings remains high, reflected in average fund-based bank limit utilisation of around 93.80 percent during the six months ended August 2026.
Acuité believes the working capital operations are likely to remain intensive over the medium term owing to the nature of the business.
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