| Sheetal Universal Limited | ||||||
| 'CRISIL BB+/Stable/CRISIL A4+' assigned to Bank Debt | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale CRISIL Ratings has assigned its ‘CRISIL BB+/Stable/CRISIL A4+’ ratings to the bank loan facilities of Sheetal Universal Ltd (SUL).
The ratings reflect the extensive industry experience of its promoters, moderate working capital cycle, locational advantage, and healthy debt protection metrics. These strengths are partially offset by susceptibility to climatic conditions and volatility in raw material prices, customer concentration in revenue and vulnerability of operating margin to fluctuations in foreign exchange (forex) rates. |
Analytical Approach CRISIL Ratings has combined the business and financial risk profiles of SUL and its subsidiaries, Svar Industries Pvt Ltd (SIPL) and Saumesvar International Pvt Ltd (SMIPL).
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers & Detailed Description Strengths:
Weaknesses:
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Liquidity: Adequate Bank limit utilisation was 88.53% for the 12 months through May 2024. Expected cash accrual of over Rs 4.40 crore will be sufficient against annual debt obligation of Rs 1.25 crore, over the medium term; the remaining will cushion liquidity. Current ratio was healthy at 3.01 times as on March 31, 2024. The promoters are likely to extend support in the form of equity and unsecured loans to meet working capital requirement and debt obligation. |
Outlook: Stable CRISIL Ratings believes SUL will continue to benefit from the extensive experience of its promoters and established relationships with clients. |
Rating Sensitivity Factors Upward factors:
Downward factors:
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About the Company SUL was incorporated in 2015. Along with its subsidiaries, SMIPL and SIPL, the company processes and supplies agriculture commodities such as peanuts, sesame seeds, spices and grains. The products are marketed under the brand, Sheetal. Facility in Rajkot has installed capacity of 18,000 Metric tons. The company has been listed on the National Stock Exchange since December 2023.
SUL and its subsidiaries are owned and managed by Mr Hiren Vallabhbhai Patel (Managing Director) and Ms Kajal Hiren Patel (Director). |
About the Group Svar Industries Private Limited: The company was started in 2021 to procure sunflower oil from Russia and sell it in India. But due to geopolitical uncertainties, the operations could not begin. It is fully owned by SUL.
Saumesvar International Private Limited: The company was set up in 2017 to transfer the domestic business of SUL. The company was also focusing on providing products to a Russian client. But currently, it does not generate revenue of more than Rs 60 lakh. It is fully owned by SUL. |
Key financial indicators
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Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | |||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||
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Criteria Details
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