ASP Sealing Products Ltd

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 21.14 Crs. of ASP Sealing Products Ltd

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	21.14	Long Term	BWR BB + /Stable Assignment
Grand Total	21.14	(Rupees Twenty One Crores and Fourteen lakhs Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings has assigned the ratings at BWR BB+/Stable for the bank loan facilities of Rs. 21.14Crs. Brickwork Ratings has relied on the audited financials of ASP Sealing Products Ltd for FY25 and Provisional FY26, information furnished by the client and its bankers, to arrive at the present ratings. The assignment of the rating draws strength from the vast business experience of the promoters in the automotive industry, an established track of operations and upmove trend of sales. However, the rating is constrained by the past credit rating history, intense competition, and volatility associated with the business. BWR believes that the business risk profile of ASP Sealing Products Ltd will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the revenues and profit show sustained improvement, with improvement in debt protection metrics. The rating outlook may be revised to 'Negative' if the revenues go down, profit margins show lower than expected figures or if there is a delay in debt servicing

KEY RATING DRIVERS

Credit Strengths:

• Established track record of the company :

  Established in 1989, the firm leverages over six decades of industry experience to navigate market cycles effectively. This extensive history has fostered reliable, long-term partnerships with both suppliers and customers. Under the guidance of a seasoned management team with deep domain expertise, the company maintains a strong and stable market presence.

• Moderate Financial Risk Profile :

  In FY26 provisional, the revenue increased by 9.8% due to increase in domestic sales by Rs. 10Crs. The PAT was Rs. 3.95Crs. in FY24  which reduced to Rs. 2.68Crs. in FY25 due to increase in interest charges from Rs. 3.67Crs. in FY24 to Rs. 6.15Crs. in FY25. In FY26, the PAT increased to Rs. 3.28Crs. due to reduction in interest charges and increase in TOI.

  The current ratio was 1.63x in FY24 which slightly decreases to 1.54x in FY25 due to reduction in current assets. In FY26 Provisional, the current ratio improved to 1.67x due to increase in trade receivable leading to increase in Current Assets.

  ISCR was 2.68x in FY24  which decreased to 2.07x in FY25 due to increase in interest charges. The ratio improved to 2.53x in FY26 provisonal due to improvement in EBITDA.

   

Credit Risks:

• Compititive and fragmented nature of auto components industry :

  ASP operates within a fragmented auto components sector marked by intense competition between organized and unorganized players. While the company competes in the organized tier serving OEMs, it faces significant pricing pressure and limited flexibility to pass on cost increases. This competitive landscape, typical for Tier-II manufacturers, constrains margin expansion and poses a challenge to long-term profitability and cash flow resilience.

• Profitability susceptible to raw material price volatility :

  ASP’s profitability remains susceptible to volatility in raw material prices, particularly steel, which constitutes a key input for the company. Steel prices are influenced by domestic and global demand–supply dynamics, leading to periodic fluctuations that can impact operating margins. While the company has arrangements with OEM customers wherein raw material prices are largely settled by the OEMs with steel suppliers, and corresponding price revisions are implemented, the pass-through is not always immediate or complete. Consequently, the company remains exposed to timing mismatches, inventory holding risk, and short-term margin pressure, especially in periods of sharp price movements. This exposure also has implications for working capital requirements.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone approach for the company. 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 significantly improve its scale of operations with sustainable profitability, improvement in debt protection metrics and manage its working capital efficiently shall be the key rating sensitivities.

Positive

Growth in TOI above 20% in FY27.

EBITDA margin over 12%

The gearing  and debt protection metrics and the liquidity level maintained at a satisfactory level

Negative

Decline in TOI below Rs. 120Crs. in FY27 might be negative.

Substantial deterioration in gearing and liquidity and debt protection metrics.

LIQUIDITY INDICATORS - Adequate

The company's adequate liquidity is covering the debt obligations, and has the reasonable Current Ratio. They have cash accruals of Rs. 5.60Crs generated in FY25 and Rs.6.47Crs. in FY26 Provisional against the CPLTD of Rs. 2.43Crs and Rs. 2.5Crs. respectively. The cash & bank balance stands at Rs 0.31Crs in FY25 and at Rs 0.56Crs. in FY26. The cash credit facility has been utilized at the extent of 90% in FY26. The liquidity is marked by a healthy Current Ratio of 1.54 in FY25 and 1.67 in FY26 which reflects a healthy liquidity position of the company to serve future short term liabilities with the current assets. The DSCR remains comfortable at 1.09 in FY25 and 1.35 in FY26 indicating company's capability to pay off it's short-term obligation. The company has sufficient headroom to utilize the cash accruals and utilized cash credit limit for its future operational requirements in FY27.

ABOUT THE ENTITY

Established on May 1, 1989, as Anand SAIAG Pvt. Ltd., the company transitioned into a closely held Public Limited Company on November 7, 1994, and was subsequently renamed ASP Sealing Products Ltd on August 19, 1996. The organization specializes in the manufacturing and international marketing of EPDM door seals, rubber profiles for the automotive industry, and industrial hoses for prominent clients including Imperial Auto, Hindalco, and Fenner India. While the manufacturing unit was originally founded in Rudrapur, District Nainital, a need for increased capacity led to its relocation to A-7, UPSIDC Industrial Area, Gajraulla, J.P. Nagar, Uttar Pradesh, complemented by an industrial plot at C-75, Eldeco, Sidcul, Uttarakhand. Currently headquartered at its registered office at C-33 (Upper Ground Floor), Lajpat Nagar-1, New Delhi, with its corporate office situated at D-78, Sector-2, Noida, U.P., the company is governed by a Board of Directors consisting of Mr. Gurdeep Singh Anand and Mr. Rishipal Singh Anand, with daily operations managed by a professional team under the leadership of Chairman-cum-Managing Director, Mr. G. S. Anand.

ESG Profile

The company demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: Environmental risks are driven by high water usage, waste generation, and reliance on energy-intensive processes, making disclosures on water consumption, waste-management practices, renewable energy share, and emissions levels particularly important. (If applicable or available)

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce mix, safety performance , and training initiatives offering insights into operational resilience.

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 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Annual)
Operating Revenue	Rs.Crs.	102.81	102.48	112.55
EBITDA	Rs.Crs.	9.81	12.70	13.16
PAT	Rs.Crs.	3.95	2.68	3.28
Tangible Net Worth	Rs.Crs.	34.94	37.36	40.64
Total Debt / Tangible Net Worth	Times	0.98	0.95	0.93
Current Ratio	Times	1.63	1.54	1.67

KEY COVENANTS OF THE FACILITY RATED

Standard Covenants applicable

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating  (2026)			2026 (History)		2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	21.14	BWR BB+/Stable (Assignment)	21Jan2026	BWR withdrawn (Withdrawal)	23Jul2025	BWR D (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	10Jul2024	BWR D (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	NA	NA
Non Fund Based	ST	0.00	NA	21Jan2026	BWR withdrawn (Withdrawal)	23Jul2025	BWR D (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	10Jul2024	BWR D (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	NA	NA
Grand Total		21.14	(Rupees Twenty One Crores and Fourteen lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Manufacturing Company

Analytical Contacts
Srija Das Ratings Analyst srija.das@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.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	Yes Bank	Term Loan - Out-standing	3.14	_	3.14	Simple##
2	Yes Bank	Cash Credit - Sanctioned	18.00	_	18.00	Simple##
Total			21.14	0.00	21.14
TOTAL (Rupees Twenty One Crores and Fourteen lakhs 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.