RATING RATIONALE
01Apr2026
Atithi Paper LLP
Brickwork Ratings assigns the long-term and short-term ratings for the Bank Loan Facilities of Rs. 64.00 Crs. of Atithi Paper LLP
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 62.17 | Long Term |
BWR BB
/Stable Assignment |
|
| (9.00) | Short Term |
BWR A4
Assignment |
||
| Non Fund Based | 1.83 | Long Term |
BWR BB
/Stable Assignment |
|
| (10.00) | Short Term |
BWR A4
Assignment |
||
| (0.91) | ||||
| Grand Total | 64.00 | (Rupees Sixty Four Crores Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK
Brickwork Ratings has assigned a long-term and short-term ratings of BWR BB/Stable / BWR A4 to the bank loan facilities of Rs. 64.00 Crs. The rating draws strength from the vast business experience of the promoters, a healthy scale of operations and stretched liquidity. However, the ratings are constrained by the risk associated with exposure to intense competition and limited bargaining power with the distributors and agents.
BWR believes that the business risk profile of Atithi Paper LLP will be maintained over the medium term. The long-term rating has been assigned a ‘Stable’ outlook as the business risk profile of the company is stable and its present financial performance is expected to be maintained in the medium term. The rating outlook may be revised to 'Positive' in case there is an improvement in revenues and profit margins on a sustained basis. The rating outlook may be revised to 'Negative' if there is any deterioration in the financial risk profile or liquidity issues.
Brickwork Ratings (BWR) has essentially relied upon the audited financial statements of the company up to FY25, projected financials for FY26 and FY27, as well as information/clarifications provided by the company’s management and its bankers, to arrive at the present rating.
KEY RATING DRIVERSCredit Strengths:
-
Extensive experience of the partners: :
The company is led by a well-qualified and experienced board of directors with a diverse range of expertise in Machinery Marketing industry, Marketing of the Products and Brand development, experience in Cement industry and experience in Ceramic Industry. Manish Manjibhai Rajpara has about 15 years of experience in Machinery Marketing industry as he is associated company engaged in manufacturing of Machineries. Amitbhai Maganbhai Kalavadiya is having 9 years of experience in Marketing line as he is partner in octiva ceramics and looking after Overall Marketing of the Products and Brand development. Sanjay Devjibhai Kotadiya has about 25 years expeince in business as he was having 13 years of experience in Marketing in Family Business of Maxen Group of Companies and He is having 4 years of experience in Cement industry as he is director in Marco Cement Pvt. Ltd., He is having 9 years of experience in ceramic industry as he is director in delton ceramic pvt. Ltd. He is looking after overall Adminstrator of the company. Hasmukh P Bhatasna has about 6 years experience in Ceramic Industry as he was partner in Famous Ceramic for 3 years He was proprietor of Jeenam Marketing engaged in Trading of Tiles. He has about 6 years experience in Cotton Industry as he was director in Jeenam Cotton Pvt. Ltd. He has about 7 years experience in Spinning Industry as he is director in Tathastu Spintex Pvt. Ltd. He has vast experience of many industries and is one of the pioneer of this group. He will be responsible for overall management of the unit. Rajeshbhai Shivjibhai Savsani is about 27 years of experience in business as he was partner in Krishna Mrable for 7 years started in 1994 then he was director in Markglaze Pvt. Ltd. In 2002 For 6 years engaged in manufacturing of tiles, He is partner and promoter in Octiva Ceramics since 2009 engaged in Manufacturing of Tiles, He is director in Tathsatu Spintex Pvt. Ltd. Since 2015 engaged in manufacturing of Textiles.
-
Starting stage of operations: :
The firm started the business operation in April 2024.The firm acheived the revenue of ~ Rs. 94.0 crs in FY25 and firm projected to acheived the of Rs. 250 cr in FY26 against till Feb26 the firm actually acheived the revenue of ~ Rs. 198.0 crs almost 80% sales acheived timely pick-up the operation of business will remain key factor over the midium term.
-
Leveraged capital structure: :
The capital structure is leveraged, with gearing of 2.93 times and total outside liabilities to tangible networth (TOL/TNW) ratio of 3.66 times as on March 31, 2025. Sustainable improvement in the capital structure will remain a key rating sensitivity factor.
For arriving at its ratings, BWR has considered a standalone financials of the company and applied its rating methodology as detailed in the Rating Criteria.
RATING SENSITIVITIES
Positive:
- Improvement in operating income by 15% of BWR projection over FY2026 , with an operating margin improving to 6.5% or more, improvement in PAT margin along with enhanced cash accruals and a stronger cash and cash equivalent position.
- Maintaining satisfactory debt protection metrics, with ISCR and DSCR at comfortable levels.
Negative:
- A decline of 15% or more in revenue, with EBITDA margin dropping below 6%.
- Decline in the current ratio below 1.00x and DSCR falling below 1.25x.
Since the company started production in FY 2024-25 and maximum utilisation of production capacity happened for last 6 months of FY25, the company's liquidity position is stretched as reflected by EBITDA and net cash accruals, not sufficient to covers the debt obligation. The current ratio of the firm is 1.06 times in FY2025.
As of Feb 2026, the firm achieved revenue of Rs. ~ 198.00 crs, against BWR projections of Rs.220 Cr. With company projected to report positive PAT of Rs. 5.91 crs. it will have a comfortable liquidity position to service CPLTD and interest obligations in FY 26.The Company has an average utilisation of CC limits to ~85% for the last 12 months, reinforcing efficient utilisation of working capital towards factory production capacity, an indication towards stabilisation of operations. Current ratio remains moderate at 1.06 times on March 31, 2025 and is projected to be at 1.10.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Commodities | Forest Materials | Paper, Forest & Jute Products | Paper & Paper Products |
Atithi Paper LLP was established on July 14, 2021, near Morbi (Gujarat). The firm manufactures kraft paper, and operations started in April 2024. The firm is promoted by Mr. Manishkumar Manjibhai Rajpara, Mr. Raj Nalinbhai Amlani, Mr. Dhaval Prabhubhai Rajpara and 33 others and of the partner is already running a successful company, namely Om Shree Paper Mills in Hyderabad, with an installed capacity of 10000 MT per month of kraft paper. Further in the Rajkot area, it is a general trend that a large number of professionals and investors come together with an idea to start a business, thus benefiting from the dispersal of risk, easy sourcing of capital, and experience sharing. With this idea, the company has been formed and has now started with almost 85% of capacity utilization after stabilization of operations in FY 2024-25. The management is supported by 20 professionals in their respective fields. The company has a coal-based turbine generating 4.2 MW of power for the use of a captive boiler plant and the electricity requirement of 2.8 MW. The company plans to further expand the manufacturing capacity in FY 2026-27 to utilize the remaining in-house power capacity.The power plant is coal-based, and there is easy availability of coal from the market
ESG ProfileThe company demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.
Environmental: Environmental risks are primarily driven by high water consumption, waste generation, and energy-intensive operations. Consequently, disclosures regarding water usage, waste management practices, the share of renewable energy, and emission levels are critical for assessing sustainability.The atithi papar LLP in compiance of meeting regulatory guidelines has obtained pollution certificate on June 2024 for utilizing kraft paper production capacity of 10500 MT per month and 4 MW of power generation.
Social: Social factors center on strict adherence to labor laws, robust accident prevention frameworks, and human capital development. Key metrics, including gender diversity (workforce mix), safety performance, and training initiatives, serve as vital indicators of the company’s operational resilience. With the proposed project of company, there will be an opportunity to generate employement for 200 people apart from developent of other eco system in the area.
Governance: Governance assessment focuses on board independence, committee effectiveness, and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms, and risk-management practices.
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 22 - 23 (Audited - Annual) |
FY 23 - 24 (Audited - Annual) |
FY 24 - 25 (Audited - Annual) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | Not Available | Not Available | 93.69 |
| EBITDA | Rs.Crs. | Not Available | Not Available | 5.82 |
| PAT | Rs.Crs. | Not Available | 0.07 | -6.75 |
| Tangible Net Worth | Rs.Crs. | 17.77 | 32.00 | 27.35 |
| Total Debt / Tangible Net Worth | Times | 0.25 | 1.81 | 2.75 |
| Current Ratio | Times | 32.51 | 25.92 | 1.06 |
The terms of bank sanctions include standard covenants normally stipulated for such facilities
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
Not Applicable
ANY OTHER INFORMATIONNA
RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2026) | 2025 | 2024 | 2023 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 62.17 |
BWR BB/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| FB SubLimit | ST | (9.00) |
BWR A4
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Non Fund Based | LT | 1.83 |
BWR BB/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| NFB SubLimit | ST | (10.00) |
BWR A4
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| (0.91) |
BWR A4
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Grand Total | 64.00 | (Rupees Sixty Four Crores Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Harshit Rastogi Ratings Analyst harshit.r@brickworkratings.com |
Mukesh Kumar Verma mukesh.verma@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 | State Bank Of India (SBI) | Term LoanSanctioned | 42.17 | _ | 42.17 | Simple## |
| 2 | State Bank Of India (SBI) | Cash CreditSanctioned | 20.00 | _ | 20.00 | Simple## |
| Sub-Limit (Derivative/FC/CEL) Sanctioned | (0.91) | |||||
| Sub-Limit (EPC) Sanctioned | (9.00) | |||||
| Sub-Limit (LC) Sanctioned | (10.00) | |||||
| 3 | Un tied portion | Proposed loanProposed | 1.83 | _ | 1.83 | Simple## |
| Total | 64.00 | 0.00 | 64.00 | |||
| TOTAL (Rupees Sixty Four 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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