Intimation of Credit Rating
Price
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Awaiting price reaction for this filing.
CARE Ratings has assigned a long-term rating of CARE BB- with Stable outlook to Shree Bhavya Fabrics Ltd's bank facilities — ₹25.27 crore term loan and ₹44.73 crore fund-based/non-fund-based facilities (also rated A4 for short-term). This is the first rating assigned to these facilities. The company's FY25 revenue stood at ₹186.56 crore with a modest 5.89% operating margin and 1.26% net margin. While the rating acknowledges experienced promoters and Gujarat's textile hub advantage, it flags concerns around stretched liquidity, an elongated 155-day operating cycle, thin profitability, and exposure to a fragmented, competitive textile industry with volatile raw material costs.
The BB- rating sits in speculative (non-investment-grade) territory, signalling higher credit risk and likely higher borrowing costs for shareholders to monitor. The Stable outlook suggests no immediate rating pressure, but the stretched liquidity and working-capital-heavy operations remain key risks for the stock.