RATING RATIONALE
21 Oct 2019

B.M. Gupta Developers Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.30.00 Crs. of B.M. Gupta Developers Pvt. Ltd.

Particulars
Facility/Instrument** Amount (Rs.Crs) Tenure Rating*
Fund Based
Term LoanProposed
30.00
Long Term BWR B (Stable)
Sub Total 30.00
Grand Total 30.00 (Rupees Thirty Crores Only)
*Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank facilities are provided in Annexure-I
Note: The facility is not sanctioned it is proposed.
RATING ACTION / OUTLOOK : Stable

Brickwork Ratings has assigned the rating of BWR B (Outlook: Stable) to the proposed bank loan facility of B.M. Gupta Developers, the rating factors in the extensive experience of the promoters, construction of new projects, and locational advantage. However, the rating is constrained by high dependence on advances from customers and bank borrowings, timely project execution risk, and industry risk.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA

For ariving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward, the ability of the company to complete the projects in time thereby turning aside cost and time overrun, to improve the capital structure by inducing additional capital, achieve the projected revenue and profitability margins, and manage liquidity would be the key rating sensitivities.

Positive- The rating outlook may be revised to positive f the company is able to achieve significant growth in revenue and profitability backed by favorable industry scenario.

Negative- The rating outlook may be revised to negative if the revenues go down and profit margins show lower than expected figures.

LIQUIDITY POSITION

The liquidity of the company is repressed by cash and cash equivalents of INR 0.08 crores in FY 2019. The current ratio and quick ratio of 1.05x and 1.00x respectively in FY 2019 are inadequate. The overall liquidity position of the company is poor.

PROFILE

Incorporated in 2008, BM Gupta Developers is a Rewari-based private limited company engaged in the business of residential real estate development. The company is building three projects in the segment of township and affordable housing which under the name of "Elegant City", "Elegant Heights", and Antriksh Towers". The key promoters of the company are Mr. Radhey Shyam Gupta, Mr. Vijay Kumar Gupta, Mr. Ripu Daman Gupta, and Mr. Ravi Shankar Gupta.

KEY FINANCIAL INDICATORS
Key Parameters Units FY 18-19
FY 17-18
Operating Revenue Rs.Crs. 3.92 3.41
EBITDA Rs.Crs. 0.99 0.88
PAT Rs.Crs. 0.41 0.60
Tangible Net Worth Rs.Crs. 9.77 9.36
Total Debt/Tangible Net Worth Times 4.04 1.49
Current Ratio Times 1.05 1.00

RATING HISTORY (INCLUDING WITHDRAWAL AND SUSPENSION)
S.No Current Rating (2019) Rating History
Facilities Tenure Amount (Rs.Crs) Rating 2018 2017 2016
Fund Based
1
Term Loan - Proposed
Long Term
30.00
BWR B
(Pronounced as BWR Single B )
(Outlook: Stable)
NA NA NA
Total 30.00 (Rupees Thirty Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS

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.

Hyperlink/Reference to applicable Criteria : For More Information Contact:
Analytical Contacts Investor Contacts

Akshay Rastogi

Ratings Analyst B : +91 11 2341 2232 akshay.r@brickworkratings.com

Liena Thakur

Assistant Vice President - Corporate Communications M : +91 84339 94686 liena.t@brickworkratings.com

Satvinder Kumar Gakhar

Associate Director - Ratings B : +91 11 2341 2232 satvinder.g@brickworkratings.com
1-860-425-2742
B.M. Gupta Developers Pvt. Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
Name of the Bank Facilities Tenure Amount (Rs.Crs)
State Bank Of India (SBI) Term LoanProposed Long Term 30.00
TOTAL (Rupees Thirty Crores Only) 30.00

Note: The facility is not sanctioned it is proposed.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon RateMaturity DateISIN Particulars
NANANANANANA

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NANANANA

Additional information is available at www.brickworkratings.com The ratings above were solicited by,or on behalf of , the issuer, and therefore, Brickwork Ratings has been compensated for the provision of the ratings.
Ratings are not a recommendation or suggestion ,directly or indirectly, to you or any other person, to buy sell, make or hold on any investement,loan or security or to undertake any investement strategy with respect to any investment,loan or security or any issuer.
About Brickwork Ratings

Brickwork Ratings (BWR), a SEBI registered Credit Rating Agency, accredited by RBI and empaneled by NSIC, offers Bank Loan, NCD, Commercial Paper, MSME ratings and grading services. NABARD has empaneled Brickwork for MFI and NGO grading. BWR is accredited by IREDA & the Ministry of New and Renewable Energy (MNRE), Government of India. Brickwork Ratings has Canara Bank, a leading public sector bank, as its promoter and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

DISCLAIMER

Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented "as is" without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons.