Maral Overseas Limited — Credit Ratings, 12-02-2025: Credit Rating

CARE Ratings Limited has downgraded the credit rating for Maral Overseas Limited's long-term bank facilities from CARE BBB-; Negative to CARE BB+; Stable. The short-term bank facilities have also been downgraded from CARE A3 to CARE A4+.

This revision reflects a sustained weakness in operational performance, particularly in the garment segment, attributed to decreased profitability due to challenging overseas market conditions. Furthermore, the company's cash accruals were impacted by geopolitical tensions in Bangladesh and sluggish export demand from the EU. CARE Ratings anticipates continued subdued performance for the fiscal year, influenced by ongoing inflationary pressures and challenging market dynamics. Concerns regarding debt coverage indicators and the volatility of raw material prices also weigh on the ratings.

Nevertheless, the ratings benefit from the strong parentage of the LNJ Bhilwara group, the experienced management team, and a diversified product profile. The downgrade suggests potential increases in borrowing costs and could affect investor sentiment.

Overall, market participants should closely monitor Maral Overseas’ operational improvements, as any positive turns could stabilize and potentially enhance future ratings.