RATING RATIONALE
10Mar2026
Shri Durga Metalex
Brickwork Ratings assigns the long-term ratings to BWR BBB-/Stable for the Bank Loan Facilities of Rs. 35.00 Crs. of Shri Durga Metalex
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 35.00 | Long Term |
BWR BBB -
/Stable Assignment |
|
| Grand Total | 35.00 | (Rupees Thirty Five Crores Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK
Brickwork Ratings has assigned the long-term ratings of BWR BBB-/Stable for the bank loan facilities of Rs.35.00 Crores of Shri Durga Metalex
The ratings assigned to the bank facilities of Shri Durga Metalex continue to derive strength from its improving track record of operations and the extensive experience of the firm, who have been managing the firm for more than a decade. The rating also factors in the growing scale of operations and profitability, a healthy financial risk profile, and an adequate liquidity position. The assessment is based on the audited financial statements of FY 2023, FY 2024, and FY 2025.
The rating outlook has been assigned as "Stable" as BWR believes that Shri Durga Metalex business risk profile will be maintained over the medium term. The 'Stable'' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.
KEY RATING DRIVERSCredit Strengths:
-
Locational Advantage :
The Firm is located in Dehradun cluster and thus has a competitive advantage in terms of skilled labor, logistics, production knowledge and vendors making the company more efficient and cost effective.
-
Group Support :
Company has strong group support with well experienced management
-
Constitution(For Proprietorships and Partnership cases) :
Withdrawal of capital by the Partners for any personal contingency would adversely affect the capital structure of the firm.Limitations of Proprietorship constitution in terms of capital and management
-
Competition in the Industry :
Entry barriers in the industry are low on account of limited capital and technology requirement and also low differentiation in the end product leading to intense competition and limiting the pricing power resulting in low profitability
For arriving at its ratings, Brickwork Ratings has applied its rating methodology as detailed in the Rating criteria below(hyperlinks provided at the end of this rationale).
RATING SENSITIVITIES
Going forward the Company's ability to improve the scale of operations, improve and maintain profitability, the debt servicing capacity and manage its working capital efficiently will be the key rating sensitivities.
Positive :
- Growth in Operating Income by around 5%, along with maintaining an Operating Margin above 2.50%, leading to steady growth in cash accruals.
- Improvement in capital structure, and resulting in improvement of gearing ratio.
- Debt protection metrics at satisfactory level.
Negative:
- Any decline in revenue below the projected level of FY26, or Operating Margin falling below 2.0%, impacting profitability and cash accruals.
- Increase in leverage due to higher working capital borrowings or debt-funded expansion, resulting in deterioration in overall gearing ratio.
- Stretch in the working capital cycle, weakening liquidity metrics,and debt protection matrices.
The company’s liquidity position is adequate, supported by a current ratio of 1.80x in FY2025, indicating sufficient short-term assets to meet current liabilities, while its debt-servicing capacity remains comfortable, reflected in an ISCR of 2.08x and net cash accruals of Rs. 5.33 crore in FY2024–25, Rs. 5.37 crore in FY2025–26, and Rs. 5.44 crore in FY2026–27; liquidity is further strengthened by cash and bank balances of Rs. 0.67 crore, efficient working capital management as indicated by UBI CC utilisation at 94%, and a tangible net worth of Rs. 22.86 crore in FY2025, providing financial flexibility and supporting overall credit comfort. Further, the combined net worth of the partners stood at Rs. 34.80 crore as on March 31, 2025, which provides additional cushion to the firm’s liquidity profile.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Services | Services | Commercial Services & Supplies | Trading & Distributors |
Shri Durga Metalex was established in 2014 at Dehradun, Uttarakhand, as part of the Durga Group’s strategic expansion into value-added steel products. It is a partnership firm operating under the same experienced management and leadership of Mr. Manish Tayal. The firm was formed with the objective of supplying primary hollow sections and primary round pipes to meet the growing demand from dealers, sub-dealers, and project customers in Uttarakhand and parts of West Uttar Pradesh.
Shri Durga Metalex is an authorized Channel Partner-cum-Distributor of APL Apollo Tubes Limited, catering to the Uttarakhand region and select areas of West Uttar Pradesh. The firm benefits from strong brand association, a wide distribution network, and established relationships with customers across the region. Supported by high-capacity stockyards, an efficient supply chain system, and in-house logistics, Shri Durga Metalex ensures timely delivery and consistent availability of products.
With a customer-centric approach, focus on quality products, and reliable service standards, Shri Durga Metalex has strengthened its market presence and contributes significantly to the overall growth and diversification of the Durga Group’s steel trading operations.
ESG ProfileThe company demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.
Environmental: Environmental risks in trading companies are primarily related to energy use, emissions from logistics and operations, waste generation, water consumption, and compliance with environmental regulations. Key disclosures include energy usage , waste handling and recycling practices, and any past violations or penalties.
Social: Social factors focus on labour practices, workforce welfare, diversity and inclusion, training and development, and community engagement. Metrics include workforce composition, employee safety and training programs, adherence to labour laws, and initiatives supporting social equity and employee growth.
Governance: Governance assessment emphasizes board structure, independence, and expertise, risk management and compliance frameworks, ethical conduct and anti-corruption policies, stakeholder engagement practices, data security and cybersecurity measures, and compliance with trading regulations.
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 22 - 23 (Audited) |
FY 23 - 24 (Audited) |
FY 24 - 25 (Audited) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 409.51 | 509.81 | 698.03 |
| EBITDA | Rs.Crs. | 8.26 | 11.74 | 13.70 |
| PAT | Rs.Crs. | 5.84 | 4.93 | 4.65 |
| Tangible Net Worth | Rs.Crs. | 9.37 | 5.53 | 22.86 |
| Total Debt / Tangible Net Worth | Times | 3.68 | 12.35 | 2.51 |
| Current Ratio | Times | 4.04 | 3.22 | 1.80 |
The terms of sanction include covenants normally stipulated for such facilities.
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
Not Applicable
RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2026) | 2025 | 2024 | 2023 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 35.00 |
BWR BBB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 35.00 | (Rupees Thirty Five Crores Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Gokul D Rating Analyst gokul.d@brickworkratings.com |
Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | Customer Support | CustSupport@brickwrokratings.com |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| 1 | Union Bank of India | Cash CreditSanctioned | 35.00 | _ | 35.00 | Simple## |
| Total | 35.00 | 0.00 | 35.00 | |||
| TOTAL (Rupees Thirty Five Crores Only) | ||||||
## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.
About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.
Disclaimer
Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.
BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).
BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.
The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.
BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.
BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.
Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.
BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.
This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.
BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.