Laxmi Goldorna House Limited has informed the Exchange about Credit Rating- New
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CRISIL Ratings has assigned a long-term rating of 'Crisil BB/Stable' to Laxmi Goldorna House Limited's bank facilities totalling Rs 53 crore. This is the company's first-ever credit rating (no prior rating history exists for 2022–2024). The facilities covered include a Rs 10 crore cash credit from Punjab National Bank, a Rs 1 crore proposed fund-based limit, and a Rs 42 crore term loan from State Bank of India maturing in July 2029. The rating reflects the Ahmedabad-based Laxmi group's established position in real estate and gold/jewellery businesses, experienced promoters, and comfortable financial risk profile. Financials improved sharply in FY24 with operating income of Rs 201.95 crore (up from Rs 60.90 crore in FY23) and profit after tax of Rs 8.81 crore. The company is currently executing two residential-cum-commercial projects in Ahmedabad (Laxmi 101 and Laxmi Courtyard) with completion targeted for 2028–2029. Weaknesses flagged include low booking levels in ongoing projects and exposure to real estate sector cyclicality.
The BB/Stable rating places the company in the speculative (non-investment) grade category, signalling moderate credit risk for lenders. For shareholders, the rating enables access to bank funding for project execution but indicates the company carries higher financial risk typical of the cyclical real estate sector.