PACRA maintains Entity Ratings of Eva Foods (Pvt.) Limited (formerly: Shujabad Agro Industries (Pvt.) Limited)

The ratings reflect Eva Foods (Pvt.) Ltd’s established brand equity in the premium Eva Oil and mid-tier Maan Ghee segments. The Company benefits from a well-defined ownership structure supported by effective board level committees that strengthen corporate governance and support strategic decision making. The Company’s organizational structure remains aligned with its operational requirements enabling efficient execution. The operating environment remains challenging as Pakistan relies heavily on imports to meet its edible oil requirements with nearly 90% of demand fulfilled through imports primarily palm oil while local production contributes approximately 10%. During FY25, the Company reported a 15% increase in total revenue reaching PKR 42.4 billion largely driven by higher sales of packaged branded oils. Profitability was pressured by elevated input costs particularly higher raw material and energy prices resulting in a decline in gross margins. While the Company demonstrated resilience in managing operating expenses, the decline in operating and net profit margins was driven by a trickle-down effect—where unavoidable increases in top-line costs, such as volatile raw material prices, naturally eroded bottom-line profitability despite tight internal cost controls. To mitigate these industry-specific risks, the Company maintains a prudent procurement strategy that has resulted in a strategic inventory buildup; however, this remains aligned with operational requirements as overall inventory days have remained stable, ensuring adequate stock levels without compromising turnover efficiency. The capital structure remains leveraged, characterized by a YoY increase in gearing and debt profile primarily comprised of short-term borrowings. However, continued sponsor support provides financial flexibility and underpins the Company’s overall credit profile.
The ratings are dependent on the management's ability to maintain its growing revenue, while sustaining margins and profitability. Prudent management of working capital and maintaining strong coverages is critical.

About the Entity
Eva Foods (Pvt.) Ltd is incorporated as a private limited company in Pakistan, since Feb 2000. The Company is primarily engaged in edible oilseed crushing/solvent extraction, refining, oil and ghee manufacturing, and its packaging. It also sells soymeal, canola and sunflower meal in local and export markets. The Company is competing in the premium edible oil segment with ‘Eva’ and the middle-tier ghee segment with ‘Maan’. Eva Foods (Pvt.) Ltd is majorly ~60% owned by the family members of Mr. Shakil Ashfaq. The remaining ~40% of the shareholding resides with Ms. Bushra Asad. The C.E.O., Mr. Shakil Ashfaq is assisted by a team of professionals.