Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on December 16, 2025
- The company is engaged in the manufacturing, processing and marketing of variety of spices on Pan India basis.
• It is also trading in grocery products and serves on B2B and D2C models.
• The company is selling its products under “Shyam Brand” with multi-channel marketing.
• The company marked steady growth in its top and bottom lines for the reported periods.
• Based on its recent financial data, the IPO appears aggressively priced.
• Only well-informed/risk seekers/cash surplus investors may park moderate funds for long term.
ABOUT COMPANY:
Shyam Dhani Industries Ltd. (SDIL) is engaged in the manufacturing and processing of 164 type/varieties of spices such as Ground Spices, Blend Spices and Whole Spices under the brand name “SHYAM”. In addition to its spice’s offerings, the company is also engaged in trading and distribution of Grocery Products such as Black Salt, Rock Salt, Rice, Poha, Kasuri Methi (Dried Fenugreek) etc. and a diverse range of Herbs and seasonings which includes Organo, Peri Peri, Chilli Flakes, Mixed Herbs, Onion Flakes, Tomato Powder etc.
The company sources the raw material of spices directly from mandis and suppliers situated across India and process and manufacture them at its manufacturing facility situated at Khasra No. 06/1067 Manpura Road, Jatawali, near Delhi bypass, Tehsil – Chomu, Jaipur, Rajasthan. SDIL’s manufacturing facility is equipped with plant and machinery to facilitate efficient production process of cleaning, drying, grading, grinding and packaging. It operates across multiple sales channels, catering to both Business to Business (“B2B”) and Direct to Consumer (“D2C”) markets. In the B2B space, it serves customers through General Trade (wholesalers and distributors across India), Modern Trade (supermarkets and big retail chains), and Quick Commerce Platforms (through quick commerce apps), ensuring its products are easily accessible to consumers. The company is also involved in Private Labelling, HoReCa (Hotel, Restaurant, and Catering) sales, and Export Sales.
By using its products these businesses can create custom spice blends for their own branded lines, allowing them to provide good quality ingredients and tailored solutions to meet the unique needs of professional kitchens. Additionally, it has a Direct-to-Consumer (“D2C”) presence via its website, offering seamless online shopping experience for customers to directly purchase products.
In the B2B and D2C sales channels, for ease of its customers, the company provides different varieties of packaging like Ground spices are sold in packs of 25 gm to 25 kg available in pouches and HDPE bags, Blend spices sold in packs of 5 gm to 1 kg available in cardboard boxes and pouches and Whole Spices in packs of 50 gm to 25 kg available in pouches and in small plastic jars. The shelf life of its ground spices and whole spices ranges from 4 months to 12 months, for blended spices it ranges from 4 months to 18 months and for Grocery products it ranges from 6 months to 12 months. As of November 30, 2025, it had 394 employees on its payroll.
ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 5498000 equity shares of Rs. 10 each to mobilize Rs. 38.49 cr. at the upper cap. The company has announced a price band of Rs. 65 – Rs. 70 per share. The minimum application to be made is for 4000 shares and in multiples of 2000 shares thereon, thereafter. The issue opens for subscription on December 22, 2025, and will close on December 24, 2025. The IPO constitute 26.62% of the post-IPO paid-up capital of the company. The shares will be listed on NSE SME Emerge. From the net proceeds of the IPO, it will utilize Rs. 10.00 cr. for repayment/prepayment of certain borrowings, Rs. 6.36 cr. for brand creation and marketing expenses, Rs. 1.63 cr. for capex on additional machineries, Rs. 0.65 cr. for solar rooftop plant, Rs. 13.26 cr. for working capital, and the rest for general corporate purposes.
The IPO is solely lead managed by Holani Consultants Pvt. Ltd., and Bigshare Services Pvt. Ltd. is the registrar to the issue. Holani Consultants Pvt. Ltd. is also the market maker as well as a syndicate member.
The company has issued initial equity capital at par value, and issued further equity shares in the price range of Rs. 40 – Rs. 70 between March 2012, and November 2025. It has also issued bonus shares in the ratio of 12 for 1 in August 2024. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 2.21, Rs. 2.90, and Rs. 7.85 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 15.16 cr. will stand enhanced to Rs. 20.66 cr. Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 144.59 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 68.10 cr. / Rs. 2.92 cr. (FY23), Rs. 107.64 cr. / Rs. 6.30 cr. (FY24), Rs. 124.75 cr. / Rs. 8.04 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 4.20 cr. on a total income of Rs. 63.83 cr.
For the last three fiscals, the company has reported an average EPS of Rs. 4.45, and an average RoNW of 35.80%. The issue is priced at a P/BV of 3.74 based on its NAV of Rs. 18.70 per share as of September 30, 2025, but its post-IPO NAV data is missing from the offer documents.
If we attribute FY26 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 17.18, and based on FY25 earnings, the P/E stands at 17.81. The issue appears aggressively priced.
For the reported periods, the company has posted PAT margins of 4.30% (FY23), 5.86% (FY24), 6.45% (FY25), 6.59% (H1-FY26), and RoCE margins of 39.69%, 46.16%, 39.00%, 19.53%, respectively, for the referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Madhusudan Masala, NHC Foods, as its listed peers. They are currently trading at a P/E of 13.4, and 9.47 (as of December 16, 2025). However, they are not truly comparable on an apple-to-apple basis.
MERCHANT BANKER’S TRACL RECORD:
This is the 13th mandate from Holani Consultants in the last three fiscals. Out of the last 12 listings, all listed with premium ranging from 12.46% to 266.20% on the date of listing.
Conclusion / Investment Strategy
SDIL is engaged in the manufacturing, processing and marketing of variety of spices on Pan India basis. It is also trading in grocery products and serves on B2B and D2C models. The company is selling its products under “Shyam” Brand with multi-channel marketing. The company marked steady growth in its top and bottom lines for the reported periods. Based on its recent financial data, the IPO appears aggressively priced. Only well-informed/risk seekers/cash surplus investors may park moderate funds for long term.
Review By Dilip Davda on December 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/
