RATING RATIONALE
30Sep2025
Shreemahakali Agro Feed Pvt. Ltd.
Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 140.00 Crs. of Shreemahakali Agro Feed Pvt. Ltd.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Fund Based | 140.00 | Long Term |
BWR BBB
/Stable Assignment |
||
| (140.00) | |||||
| (140.00) | |||||
| Grand Total | 140.00 | (Rupees One Hundred Forty Crores Only) | |||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK
BWR has assigned the long-term rating of BWR BBB/Stable for the bank loan facilities of Shreemahakali Agro Feed Pvt. Ltd.
The rating draws strength from the extensive experience of the promoters in the cattle feed and allied trading businesses, the healthy scale of operations, its moderate debt coverage indicators, and adequate liquidity profile. The promoters have established strong relationships with leading cooperative dairies in Gujarat, which support revenue visibility. However, the rating is constrained by the customer concentration risk, given that sales are primarily to a limited number of cooperative societies, the working capital-intensive nature of operations reflected in high inventory requirements, and the thin profitability margins on account of tender-based business model.
The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. BWR believes Shreemahakali Agro Feed Pvt. Ltd.’s business and financial risk profile will be maintained over the medium term.
KEY RATING DRIVERSCredit Strengths:
-
Established Track Record & Experienced Promoters :
The company is managed by its promoters Chintankumar Babulal Purohit, Amrutbhai Babulal Purohit, Bhaveshkumar Babulal Purohit and Babulal Sonaji Purohit. Mr. Babulal Sonaji Purohit. The promoters bring over two decades of experience in the agro-based trading and cattle feed industry, which has helped the company establish strong linkages with reputed cooperative milk unions. Their long-standing industry knowledge and market relationships provide operational stability and support revenue visibility.
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Healthy Scale of Operations :
The company continues to maintain a healthy scale of operations, with revenues of Rs.1,327.32 crore in FY24 and Rs.1,304.25 crore in FY25, supported by strong relationships with cooperative milk unions. Achievement Rs.328 crore in Q1 FY26 indicates good visibility for meeting projected turnover of Rs.1312.16 Crore. The large operating base provides economies of scale and supports stable cash flows.
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Moderate Debt Coverage Metrics :
DSCR stood at 1.38x and ISCR stood at 1.68x in FY25 remain moderate, indicating that the company’s cash accruals are adequate to meet its debt obligations comfortably. The current ratio is moderate at 1.38x, indicating that short-term obligations are adequately covered by current assets.
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Customer Concentration Risk :
The company derives around 80% of its revenue from its top five customers, primarily large cooperative milk unions. While this exposes the entity to customer concentration risk, the long-standing relationships, repeat orders, and reputed client profile mitigate the risk to a large extent.
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Thin Profitability Margins :
The company operates at thin profitability margins, with an operating margin of 1.58% and a net margin of 0.46% in FY25, owing to the trading nature of operations, limited value addition and raw material price fluctuations. However, the large scale of operations, efficient procurement, and repeat business from reputed unions provide some stability to earnings.
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Working Capital Intensive Operations :
Inventory and receivables rose to Rs.133.38 crore and Rs.120.41 crore in FY25 (from Rs.115.71 crore and Rs.87.67 crore in FY24), leading to high reliance on short-term borrowings. Total Debt/TNW remains moderate-to-high in the range of 3.21x in FY25, restricting financial flexibility.
For arriving at its ratings, BWR has considered the standalone performance of the company. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).
RATING SENSITIVITIES
Positive Triggers:
- A significant improvement in the scale of operations (revenues above 1500 crs), operating margins of over 7.5% and net margin of over 3% on a sustained basis.
- Improvement in leverage indicators with Total Debt/TNW below 2.0x.
Negative Triggers:
- Decline in the scale of operations (revenues below 1000crs) leading to declined operating profit margins below 1% on sustained basis, which results in deterioration in the company’s liquidity position
- Deterioration in the operating cycle adversely impacting the overall liquidity position of the company.
The company’s liquidity profile remains adequate, supported by moderate internal accruals. The net cash accrual for FY25 is Rs.6.63 Crs against no major repayment obligations. The company is expected to generate cash accruals of Rs.6.56 crore in FY26, comfortably covering its CPLTD of Rs.0.30 crore, indicating strong debt servicing capability. The working capital cycle has remained stagnant at around 45-50 days for the past two years. Further, it has unutilized working capital limits of around 70%. The company’s ability to secure higher limits from banks mitigates the immediate pressure; therefore, the liquidity is assessed as adequate. Liquidity is further supported by the promoter’s timely infusion of unsecured loans.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Services | Services | Commercial Services & Supplies | Trading & Distributors |
Shreemahakali Agro Feed Private Limited (SAFPL), incorporated in March 2018, is a Gujarat-based private company engaged in the trading and distribution of agro-based commodities and cattle feed products. The company is headquartered in Himmatnagar, Sabarkantha (Gujarat). As part of the larger Shree Mahakali Group of Companies, it is a leading certified supplier of cattle-feed raw materials, leveraging over two decades of experience in procurement, storage, logistics, and quality control. The company is a closely held private entity, managed by its promoters CHINTANKUMAR BABULAL PUROHIT, AMRUTBHAI BABULAL PUROHIT, BHAVESHKUMAR BABULAL PUROHIT and BABULAL SONAJI PUROHIT with experience in the agro-feed and allied trading businesses.
The entity belongs to the Shree Mahakali Group, promoted by Mr. Babulal Sonaji Purohit. The group comprises Shree Vinayak Corporation, Shree Laxmi Agro Industries and Shree Mahakali Corporation, all operating under sole proprietorships of the promoter. The group is primarily engaged in the trading of cattle feed and agro inputs, leveraging long-standing relationships with reputed cooperative unions.
| Standalone Financial Indicators (in ₹ crore) | Units | FY 22 - 23 (A) | FY 23 - 24 (A) | FY 24 - 25 (P) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 1508.97 | 1327.32 | 1304.25 |
| EBITDA | Rs.Crs. | 23.70 | 19.73 | 20.61 |
| PAT | Rs.Crs. | 10.50 | 7.40 | 6.04 |
| Tangible Net Worth | Rs.Crs. | 32.30 | 39.70 | 45.75 |
| Total Debt / Tangible Net Worth | Times | 3.65 | 3.11 | 3.21 |
| Current Ratio | Times | 1.21 | 1.28 | 1.38 |
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* A:Audited UA:Unaudited P:Provisional PROJ:Projected
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Note: These are latest available financial results. All ratios as per BWR's calculations; Amount in ₹ crore
|
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The terms of sanction include standard covenants normally stipulated for such facilities.
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
Not Applicable
ANY OTHER INFORMATIONNil
RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2025) | 2024 | 2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 140.00 |
BWR BBB/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| FB SubLimit | LT | (140.00) |
BWR BBB/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| (140.00) |
BWR BBB/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Grand Total | 140.00 | (Rupees One Hundred Forty Crores Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Chinmaya R Rating Analyst chinmaya.r@brickworkratings.com |
Nitika Srivastava nitika.s@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | Customer Support | CustSupport@brickwrokratings.com |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| 1 | Axis Bank Ltd. | Cash CreditSanctioned | 140.00 | _ | 140.00 | Simple## |
| Sub-Limit (Foreign Currency Demand Loan) Sanctioned | (140.00) | |||||
| Sub-Limit (Working Capital Demand Loan) Sanctioned | (140.00) | |||||
| Total | 140.00 | 0.00 | 140.00 | |||
| TOTAL (Rupees One Hundred Forty Crores Only) | ||||||
## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
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