| Brady and Morris Engineering Company Limited | ||||||
| Ratings reaffirmed at 'Crisil BBB- / Stable / Crisil A3 ' | ||||||
| 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 reaffirmed its ‘Crisil BBB-/Stable/Crisil A3’ ratings on the bank loan facilities of Brady and Morris Engineering Company Ltd (BMECL).
The ratings reflect the longstanding experience of the promoters in the material handling equipment industry, the diversified end-user industry base of the company, and its comfortable financial risk profile. These strengths are partially offset by the working capital-intensive operations and susceptibility to intense competition, cyclicality in the end-user industry, and volatility in input prices. |
Analytical approach Crisil Ratings has considered the standalone business and financial risk profiles of BMECL. |
Key rating drivers - Strengths Longstanding experience of the promoters: BMECL is a subsidiary of WH Brady and Company Ltd (WHB), which has been engaged in the material handling equipment industry since 1895. The Brady group has been controlled by the Mumbai-based Morarka family since 1960. The six-decade-long presence of the promoters has given them a healthy understanding of market dynamics and enabled them to establish relationships with suppliers and customers. Furthermore, the group has been associated with the Morris brand for over a century and has built a strong brand recall.
Diversified end-user industry base and established clientele: The company has relationships spanning over six decades with its customers and suppliers. It manufactures various types of material handling equipment for diversified end-users, including steel, oil and gas, cement, minerals and mining, power, chemicals, heavy manufacturing, water and sewage treatment, defence, nuclear energy, ports and metros. The customers include well-established players such as ACC Ltd, Braj Binani group, Lafarg Cement, Oil and Natural Gas Corporation Ltd, Indian Oil Corp, Bharat Petroleum Corp Ltd and NTPC Ltd. A diversified end-user industry base allows to overcome the risk of slowdown in an industry.
Comfortable financial risk profile: Networth was moderate at Rs 47 crore as on March 31, 2025. Gearing and total outside liabilities to adjusted networth ratios stood at 0.19 time and 0.63 time, respectively, as on March 31, 2025, owing to lower reliance on external debt. Capital structure should remain healthy over the medium term, aided by healthy accretion to reserve and absence of any debt-funded capital expenditure (capex) plan. Gearing too is likely to be less than 0.25 time over the medium term. Debt protection metrics are strong, with interest coverage ratio at 12.4 times and net cash accrual to adjusted debt ratio at 2.85 times for fiscal 2025, and are expected to be within similar range over the medium term. |
Key rating drivers - Weaknesses Exposure to cyclicality in end-user industries: The company faces competition from large and small players. Modest scale of operations limits benefits from economies of scale, which larger players are able to leverage. Though the scale of operations is expected to improve, it may remain modest over the medium term. In addition, performance is closely linked with the investment climate in end-user industries, which are cyclical. Revenues has moderated to Rs 32.83 crore for the first half of fiscal 2026, due to an industry slowdown.
Susceptibility to volatility in input prices and intense competition: Operating profitability is vulnerable to fluctuation in input prices as competition limits the ability to pass on increase in input cost without a lag. In Current fiscal H1 the margins have moderated to 8.11% due to volatility in input prices and moderation of revenues.
Working capital-intensive operations: Gross current assets (GCAs) were moderate at 155-177 days over the past three fiscals, and stood at 177 days as on March 31, 2025, driven by receivables and inventory of 93 days and 70 days, respectively. Inventory days have increased to 123 days as on September 30, 2025 (representing the first half of fiscal 2026), due to delay in offtake from customers. Majority of the inventory is order backed and products are customised as per customer specifications; hence, the company maintains a large stock of components and other inventory. |
Liquidity Adequate Net cash accrual of Rs 8-10 crore expected per annum should support liquidity in the absence of any repayment obligation. Fund-based bank limit was utilised at 63% on an average for the 12 months through November 2025. As on September 30, 2025, the company held healthy unencumbered cash and cash balances, including fixed deposits and investments of around Rs 21 crore. Internal cash accrual and unutilised bank limit should suffice to cover the incremental working capital requirement over the medium term. Current ratio was healthy at around 2.43 times as on March 31, 2025. |
Outlook Stable Crisil Ratings believes BMECL will continue to benefit from the extensive experience of the promoters in the material handling industry and their established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
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About the company BMECL was incorporated in 1946, as a majority owned subsidiary of WHB, in partnership with the UK-based Morris Material Handling Ltd. WHB holds 72.73% shareholding in BMECL. The company got listed on the Bombay Stock Exchange in 1957. It manufactures material handling equipment, such as chain pulley blocks and various types of cranes and electric hoist blocks, under the brand,, Morris. It has a total annual capacity of 8,400 pulley blocks and 300 cranes at its facilities in Bareja, Gujarat. Daily operations are managed by Mr Pavan Morarka. |
Key financial indicators – Crisil Ratings adjusted numbers
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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 - 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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