Mandi to Market: Buy or Skip? | SME IPO | SpicesBusiness | alphaamc

Mandi to Market: Buy or Skip? | SME IPO | SpicesBusiness | alphaamc

🌶️ SHYAM DHANI INDUSTRIES | SME IPO SNAPSHOT

Socho ek spices company jo raw mandi se sourcing karti hai, in-house processing & blending karti hai, aur apne brand ke through GT, Modern Retail, HoReCa & exports me sell karti hai.

Ye koi startup hype nahi — manufacturing-led, execution-driven FMCG business hai.

📌 IPO Size: ₹38.5 Cr (SME)

Why Spices?

Daily-use category hai — repeat demand, low ticket, high volume. Loose se branded shift se margins & scalability improve hoti hai.

📊 Financials

• Revenue: +16% → ₹124.75 Cr

• PAT: +28% → ₹8.04 Cr

• PAT Margin: 4.3% → 6.5%

• ROE ~41%

⚠️ Concerns

• Working capital heavy (CCC ~147 days)

• Operating cash flows negative (recent years)

• Debt elevated (D/E ~2x)

🏷️ Brand & Reach

High competition (unorganised + established players).

~80% revenue Punjab & Haryana se.

Score: 2/5

💰 Valuation

FY26E Forward P/E ~17x — fair but comfort nahi deta.

Score: 3/5

🔎 Verdict

Business achha hai, par pricing comfort nahi.

👉 IPO: SKIP

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