| M lakhamsi industries limited | ||||
| Rating reaffirmed at 'Crisil BB- / Stable' | ||||
| 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 BB-/Stable’ rating on the bank facilities of M Lakhamsi Industries limited (MLIL) (erstwhile M. Lakhamsi and Co.).
The rating continues to reflect the promoter’s extensive experience in agricultural (agro) commodities trading, diversity of customers, variety in product portfolio and moderate working capital requirements. These strengths are partially offset by the operating performance's vulnerability to fluctuations in agro commodity prices, global trading barriers and regulatory changes, and moderate financial risk profile. |
Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of MLIL.
Unsecured loans of Rs. 8.43 crores as on March 31, 2025, have been treated as debt due to instances of withdrawal in past. |
Key Rating Drivers - Strengths Diverse Customer Base and product portfolio: MLIL's extensive presence across multiple countries, including Vietnam, Russia, Philippines, Singapore, Indonesia, Turkey, and South Korea, mitigates its dependence on a single market or customer. The company's diverse product portfolio, encompassing a wide range of agro-commodities such as peanuts, sesame seeds, spices, and vegetable oils, as well as other products like chickpeas, raisins, wheat flour, oil cakes, maize, coarse grains, and cereals, further enhances its resilience to market fluctuations.
Promoters' Extensive Experience and Industry Expertise: The promoters' four-decade-long experience in the agro-commodity trading industry is a significant strength for MLIL. Their deep understanding of market dynamics, coupled with established relationships with customers and suppliers, provides a strong foundation for the company's operations. This expertise is expected to continue supporting the business.
Moderate working capital requirements: Company has moderate working capital requirement and has seen improvement during fiscal 2025 and is expected to remain similar over the medium term. Company’s gross current assets (GCA) were at 72 days primarily driven by inventory of 49 days and debtors improving to 23 days. Debtors were at 33 days and inventory of 80 days as on September 30, 2025. |
Key Rating Drivers - Weaknesses Moderate financial risk profile: The company's financial risk profile is expected to remain moderate, supported by the absence of large debt-funded capital expenditures and no dividend payout expectation. As of March 31, 2025, the company's net worth stands at Rs. 8.36 crores and total outside liabilities to adjusted worth (TOL/ANW) at 3.13 times. The debt protection metrics are moderate with an interest coverage of 1.60 times in fiscal 2025. Int coverage ratio remained similar at 1.6 times for 9 months of fiscal 2026.
Exposure to Regulatory and Commodity Price Risks: MLIL's operating performance is susceptible to fluctuations in agro-commodity prices, particularly peanuts and sesame seeds, which are vulnerable to changes in rainfall patterns and crop yields. The company's business risk profile may be impacted by volatility in availability and prices of these commodities. Furthermore, MLIL remains exposed to government regulations, including price controls, export/import restrictions, and other policy measures that may affect the agro-commodity trading industry.
Global Trade Barriers: MLIL's operations are exposed to risks associated with volatility in the global trading environment, including changes in duties, sanctions, and other trade restrictions. These barriers can impact the company's ability to import and export agro-commodities, potentially disrupting its supply chain and affecting its operating performance. |
Liquidity Stretched MLIL's liquidity position is stretched, with a high bank limit utilization of around 96% over the past 12 months. The company's cash accruals are expected to be modest at over Rs 0.75 crore. However, company have nil term debt obligations over the medium term.
The current ratio is modest at 1 time. Additionally, the promoters are likely to extend support in the form of equity and unsecured loans to meet the company's working capital requirements and repayment obligations |
Outlook Stable Crisil Ratings believes that MLIL will continue to benefit from the extensive experience of the promoters. |
Rating sensitivity factors Upward factor
Downward factor
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About the Company Incorporated in 1985, MLIL is a public limited company engaged in trading of agro commodities such as peanuts, sesame seeds, spices, and vegetable oils, both edible and non-edible while other products include chickpeas, raisins, wheat flour, oil cakes, maize, coarse grains and cereals. Mr Sanjeev Sawla currently manages the business. |
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 - 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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