Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on June 16, 2025
- The company is engaged in the manufacturing of high-quality cellulose based excipients called MCC and related products.
• It posted steady growth in its top lines for the reported periods.
• The bottom line posted down-trend for FY25 that raise a bit concern.
• The RI is around 41.13% discount to its last traded price.
• Well-informed investors may park funds for medium to long term.
ABOUT COMPANY:
Accent Microcell Ltd. (AML) was established with the primary focus on manufacturing of the high-quality cellulose-based excipients which predominantly find application in the Pharmaceutical, Nutraceutical, Food, Cosmetic and other industries. The Company is one of the Global leading manufacturers of Microcrystalline Cellulose (MCC). It has carved a niche in the production of high-quality cellulose-based excipients, that meet international quality standards.
With its two states of the art manufacturing facilities located at Pirana Road, Ahmedabad and Dahej, SEZ (Bharuch), it has developed a strong global sales and distribution network. It is serving customers across India and in more than 75 countries including USA, Canada, Germany, UK, Japan, China, Australia, Korea, Netherlands, Turkey, Vietnam, Italy, Indonesia, Poland, Egypt, France, Thailand, New Zealand, Brazil, Russia, Mexico, Chile, Zimbabwe, Denmark, Greece and many others.
Presently, the company majorly manufactures Microcrystalline Cellulose (“MCC”). MCC is an odorless, fine white powder & a purified form of cellulose, which is derived from refinement of highly purified wood pulp. It is widely used as texturizer, anticaking agent, binder, lubricant, a bulking agent, diluent which finds a wide range of applications in Pharmaceutical, Nutraceutical, Food, Cosmetic and other industries. AML manufactures 22 grades of MCC, with particle sizes ranging from 20 microns to 180 microns. The major grades of MCC manufactured and marketed by it are branded under the name “ACCEL”. Besides “ACCEL” it also sells products under the name “ACROCELL”, “MACCEL” and “VINCEL”.
AML also manufactures co-processed excipients. Co-processed excipients are unique formulations created by combining two or more individual excipients to achieve specific properties or functionalities that cannot be attained with any single excipient alone. To meet the rising demand for co-processed excipients, it offers “ACCEL SMCC” as product, which is a co-processed blend of Microcrystalline Cellulose (MCC) & Colloidal Silicon Dioxide and it also offers “RC” as a product, which is a co-processed blend of Microcrystalline Cellulose with Carboxy Methyl Cellulose, to cater the growing market of the co-processed excipients. The company distinguishes its product categories as ACCEL, ACROCELL, MACCEL and RC.
As of March 31, 2025, it had 188 employees on its payroll and additional 169 contract labours in various departments.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 2946020 equity shares of Rs. 10 each at a fixed price of Rs. 135 per share to mobilize Rs. 39.77 cr. This is the 2nd RI from the company since May 2024. The RI is opening for subscription on June 18, 2025, and will close on June 27, 2025. The company is offering RI in the ratio of 7 for 50 to its eligible stakeholders as of the record date of June 04, 2025. The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on NSE SME Emerge. The company is spending Rs. 0.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 32.33 cr. for setting up of microcrystalline cellulose manufacturing plant, and Rs. 6.94 cr. for general corporate purposes.
The RI is self-managed by the company itself, and KFin Technologies Ltd. is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 21.04 cr. will stand enhanced to Rs. 23.99 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 323.85 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, it has posted a total income/ net profit of Rs. 206.97 cr. / Rs. 13.01 cr. (FY23), Rs. 264.46 cr. / Rs. 36.40 cr. (FY24), Rs. 270.99 cr. / Rs. 33.06 cr. (FY25). While it marked boosted bottom line for FY24, it posted de-growth in its bottom line for FY25.
DIVIDEND POLICY:
The company has paid a dividend of 8% for FY23 and 10% for FY24. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: ACCENTMIC (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 241.20 on June 03, 2025, and opened on an ex-right basis at Rs. 237.00 on June 04, 2025. Since then, it has marked a high/low of Rs. 237.00 / Rs. 225.00. The scrip last closed at Rs. 229.35 as of June 13, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 297.17 / Rs. 169.81. The counter is currently under ASM ST: Stage 1.
The promoters’ holding has been constant around 55.09% for the last two quarters ended with March 31, 2025, and September 30, 2024. The counter is well managed above the RI price to lure investors.
Conclusion / Investment Strategy
AML is engaged in the manufacturing of high-quality cellulose-based excipients called MCC and related products. It posted steady growth in its top lines for the reported periods. The bottom line posted down-trend for FY25 that raise a bit concern. The RI is around 41.13% discount to its last traded price. Well-informed investors may park funds for medium to long term.
Review By Dilip Davda on June 16, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
