Animal Feed IPOs in India involve companies raising funds to expand production, improve infrastructure and cater to the growing demand for livestock feed. These IPOs attract investors seeking opportunities in the agriculture and livestock sectors, leveraging India’s rising protein consumption trends.
Content:
- Overview of the Animal Feed IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Animal Feed Sector IPOs
- Disadvantages of Investing in Animal Feed Sector IPOs
- Role of the Animal Feed Industry in the Economy
- How to invest in Animal Feed IPOs?
- Future Outlook of Animal Feed IPOs in India
- Animal Feed IPOs in India – FAQ
Overview of the Animal Feed IPOs in India
Animal Feed IPOs in India involve companies raising funds through stock market offerings to expand production and meet the growing demand for livestock feed, driven by increasing meat, dairy and aquaculture consumption nationwide.
These IPOs attract investors seeking opportunities in India’s agriculture sector. Funds raised are used to modernize infrastructure, enhance operational efficiency and support sustainable growth in the animal husbandry and protein supply chain.
IPO Fundamental Analysis
Shivam Chemicals Limited
Shivam Chemicals Ltd’s financial results show a decline in revenue for FY24, with sales of ₹147 crore compared to ₹157 crore in FY23. Operating profit has decreased to ₹3 crore from ₹5 crore, while net profit is ₹1 crore in FY24.
Revenue Trend: Revenue for FY24 stands at ₹147 crore, a decline from ₹157 crore in FY23. The decrease reflects a slight slowdown in demand, with total sales showing fluctuations across FY23 and FY24.
Equity and Liabilities: Equity capital increased from ₹0.4 crore in FY23 to ₹12 crore in FY24, reflecting significant changes. Liabilities grew to ₹41 crore in FY24, compared to ₹31 crore in FY23, highlighting increased borrowings.
Profitability: Operating profit dropped to ₹3 crore in FY24 from ₹5 crore in FY23, reflecting lower operating margins (OPM 2%). The company’s net profit declined to ₹1 crore in FY24 compared to ₹4 crore in FY23.
Earnings Per Share (EPS): EPS decreased significantly to ₹0.98 in FY24 from ₹93.25 in FY23. The decline in EPS corresponds to the reduction in net profit, demonstrating the impact of lower earnings on shareholder value.
Return on Net Worth (RoNW): The Return on Net Worth (RoNW) in FY24 stands at 8.16%, indicating a decrease from previous periods. Lower profitability and reduced earnings have contributed to a less favourable return on equity.
Financial Position: Shivam Chemicals Ltd shows increased liabilities and asset investments. The rise in borrowings and fixed assets suggests expansion efforts, while liabilities indicate a growing reliance on external funding.
Mukka Proteins Limited
Mukka Proteins Ltd reported a significant increase in sales from ₹770.5 crore in FY22 to ₹1,380 crore in FY24. The company improved profitability, with operating profit rising to ₹105.47 crore and net profit reaching ₹74.31 crore in FY24.
Revenue Trend: Sales grew from ₹770.5 crore in FY22 to ₹1,380 crore in FY24, reflecting strong business expansion. The company witnessed a consistent upward trend in revenue, with a notable increase in FY24, compared to ₹1,177 crore in FY23.
Equity and Liabilities: Equity capital rose from ₹22 crore in FY22 to ₹30 crore in FY24, while total liabilities increased from ₹392.3 crore in FY22 to ₹940.79 crore in FY24, reflecting higher borrowings and business growth.
Profitability: Operating profit increased from ₹47.58 crore in FY22 to ₹105.47 crore in FY24, with operating profit margin (OPM) improving from 6.13% in FY22 to 7.55% in FY24, resulting in a rise in net profit to ₹74.31 crore in FY24.
Earnings Per Share (EPS): EPS saw significant growth, rising from ₹1.1 in FY22 to ₹2.34 in FY24. The company’s consistent performance contributed to a healthy increase in EPS, compared to ₹2 in FY23.
Return on Net Worth (RoNW): RoNW improved from 22.7% in FY22 to 25.6% in FY24, reflecting enhanced returns for shareholders. This strong growth in RoNW indicates efficient utilization of equity to generate profits.
Financial Position: Total assets grew from ₹392.3 crore in FY22 to ₹940.79 crore in FY24, with current assets expanding from ₹286.39 crore in FY22 to ₹816.52 crore in FY24, showcasing a solid financial position backed by increasing reserves.
Mayank Cattle Food Limited
Mayank Cattle Food Ltd’s financial results show a decline in sales from ₹322 crore in FY22 to ₹290 crore in FY24. Operating profit improved from ₹4 crore in FY22 to ₹9 crore in FY24, with an increase in reserves and equity capital.
Revenue Trend: Sales decreased from ₹322 crore in FY22 to ₹290 crore in FY24, with a drop in FY23 to ₹309 crore Despite the decline, the company maintained steady revenue performance over the period.
Equity and Liabilities: Equity capital rose from ₹0.2 crore in FY22 to ₹5 crore in FY24. Reserves increased significantly from ₹3 crore in FY22 to ₹22 crore in FY24, reflecting strong growth in shareholder value.
Profitability: Operating profit improved from ₹4 crores in FY22 to ₹9 crores in FY24, with an increase in OPM from 1% in FY22 to 3% in FY24, signalling better operational efficiency.
Earnings Per Share (EPS): EPS increased from ₹40 in FY22 to ₹5.61 in FY24. A significant jump in FY23 to ₹63.5 was notable, indicating improved profitability despite declining sales.
Return on Net Worth (RoNW): RoNW was 19% in FY24, down from 22% in FY23. However, it has remained consistently strong over the past 5 years, showcasing solid returns on equity.
Financial Position: Total liabilities increased from ₹42 crore in FY22 to ₹71 crore in FY24, primarily driven by higher borrowings. Assets grew from ₹42 crore in FY22 to ₹71 crore in FY24, reflecting improved financial strength.
IPO Financial Analysis
Shivam Chemicals Limited
| FY 24 | FY 23 | |
| Sales | 147 | 157 |
| Expenses | 143 | 151 |
| Operating Profit | 3 | 5 |
| OPM % | 2% | 3% |
| Other Income | 1 | 0 |
| Interest | 1 | 0 |
| Depreciation | 1 | 0 |
| Profit before tax | 2 | 5 |
| Tax % | 41% | 27% |
| Net Profit | 1 | 4 |
| EPS in Rs | 0.98 | 93.25 |
*All values in ₹ crore
Mukka Proteins Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,380 | 1,177 | 770.5 |
| Expenses | 1,274 | 1,091 | 722.92 |
| Operating Profit | 105.47 | 86.17 | 47.58 |
| OPM % | 7.55% | 7.28% | 6.13% |
| Other Income | 16.32 | 6.68 | 5.64 |
| EBITDA | 121.79 | 92.85 | 53.23 |
| Interest | 25.1 | 16.48 | 9.68 |
| Depreciation | 12.34 | 11.89 | 8.58 |
| Profit Before Tax | 84.35 | 64.48 | 34.97 |
| Tax % | 15.59% | 28.56% | 29.06% |
| Net Profit | 74.31 | 47.53 | 25.82 |
| EPS | 2.34 | 2 | 1.1 |
*All values in ₹ crore
Mayank Cattle Food Limited
| Mar 2024 | Mar 2023 | Mar 2022 | |
| Sales | 290 | 309 | 322 |
| Expenses | 280 | 302 | 318 |
| Operating Profit | 9 | 6 | 4 |
| OPM % | 3% | 2% | 1% |
| Other Income | 0 | 0 | 0 |
| Interest | 3 | 3 | 2 |
| Depreciation | 2 | 2 | 1 |
| Profit before tax | 4 | 2 | 1 |
| Tax % | 24% | 26% | 30% |
| Net Profit | 3 | 1 | 1 |
| EPS in Rs | 5.61 | 63.5 | 40 |
*All values in ₹ crore
About the Company
Shivam Chemicals Limited
Shivam Chemicals Limited, established in October 2010, manufactures and distributes products including hydrated lime, poultry feed supplements, di-calcium phosphate, magnesium oxide and limestone powder. The company has supplied over 250,000 metric tons of various products.
The company operates through its wholly owned subsidiary, Shivam Chemicals and Minerals Private Limited, in Dahej, Gujarat. Specializing in hydrated lime production, it has a manufacturing capacity of 60,000 MT, contributing to the company’s growth in the minerals and chemical sectors with a diverse product portfolio.
Mukka Proteins Limited
Mukka Proteins Limited, incorporated in March 2003, specializes in manufacturing fish protein products such as fish meal, fish oil and fish soluble paste. These products serve as essential ingredients for aqua feed, poultry feed and pet food production.
The company operates six production facilities across India and Oman, with additional blending plants and storage units in India. Mukka Proteins exports to over 10 countries globally, including Bahrain, Chile and China. It is ISO certified, ensuring high-quality management standards and strong global operations with a workforce of 385 employees.
Mayank Cattle Food Limited
Mayank Cattle Food Limited, incorporated in 1998, manufactures cattle and animal food products, including cattle food cakes and edible oil. Its manufacturing facility in Rajkot, Gujarat spans 87,133 sq. ft., equipped with advanced technology for efficient production.
The company has steadily expanded its production capacity, increasing output for Maize Oil and Maize Cake in recent years. With a capacity of 22,896 MT for Maize Oil and 45,792 MT for Maize Cake, Mayank Cattle Food serves markets in Gujarat, Delhi and Maharashtra, enhancing its regional presence.
Advantages of Investing in Animal Feed Sector IPOs
The main advantage of investing in Animal Feed Sector IPOs is the potential for high returns driven by growing demand for quality livestock feed, increasing protein consumption and the sector’s critical role in agriculture and food security.
- Growing Demand: Rising urbanization and dietary shifts toward meat and dairy boost demand for animal feed, ensuring consistent growth for companies in the sector.
- Sector Stability: The agricultural and livestock industries are vital for food security, making investments in animal feed companies relatively stable and less prone to economic downturns.
- Innovation Opportunities: Companies invest in research for high-quality feed solutions, creating opportunities for technological advancements and growth and enhancing long-term profitability.
- Export Potential: India’s competitive pricing and production capabilities in animal feed present opportunities for global market expansion, increasing revenue and returns for investors.
Disadvantages of Investing in Animal Feed Sector IPOs
The main disadvantage of investing in Animal Feed Sector IPOs is the potential risk from fluctuating raw material costs, regulatory changes and dependency on livestock markets, which can affect profitability and long-term sustainability.
- Raw Material Volatility: Fluctuating costs of essential raw materials like grains and oilseeds can significantly impact production costs and profit margins, making the sector vulnerable to market dynamics.
- Regulatory Risks: Stringent environmental and quality regulations may increase compliance costs or hinder operations, especially as global standards for feed production continue to evolve.
- Sector Dependency: The industry’s performance is closely tied to livestock and aquaculture markets, making it susceptible to diseases or disruptions in animal husbandry practices.
- Competitive Pressures: Intense competition from domestic and global players can limit pricing power and market share, potentially affecting profitability for new entrants or smaller companies.
Role of the Animal Feed Industry in the Economy
The animal feed industry plays a crucial role in the economy by supporting livestock productivity, ensuring food security and contributing to agricultural development through high-quality nutrition for poultry, cattle and aquaculture sectors.
Additionally, it generates employment across farming, manufacturing and logistics while boosting exports of meat, dairy and feed products. The industry’s growth drives rural development and aligns with increasing global protein consumption demands.
How to invest in Animal Feed IPOs?
To invest in Animal Feed IPOs, follow these steps:
- Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue.
- Research IPO Details: Review the company’s prospectus, pricing and performance.
- Place Your Bid: Log in to the brokerage account, select the IPO and bid as per your preferences.
- Monitor and Confirm Allocation: If allocated, your shares will be credited to your Demat account after listing.
Future Outlook of Animal Feed IPOs in India
The future outlook for Animal Feed IPOs in India is promising, driven by rising protein consumption, growth in livestock farming and government initiatives supporting agricultural and animal husbandry development.
Increased focus on sustainable feed solutions and export opportunities enhances growth potential. Investors may benefit as companies modernize operations and expand globally, aligning with India’s evolving agribusiness landscape and rising global demand.
Animal Feed IPOs in India – FAQ
Animal Feed IPO refers to the initial public offering of companies in the animal feed sector, allowing them to raise funds from investors to expand production, improve infrastructure and support the growing demand for livestock feed.
Major Indian animal feed companies launching IPOs include Shivam Chemicals Limited, Mukka Proteins Limited and Mayank Cattle Food Limited. These firms focus on manufacturing poultry, cattle and aquaculture feed, targeting the growing livestock and protein consumption markets.
Animal Feed IPOs highlight opportunities in agriculture and protein sectors, attracting investments toward sustainable food production. They boost the capital market’s diversity and align with India’s agricultural growth and increasing global demand for livestock feed.
Animal Feed IPOs highlight opportunities in agriculture and protein sectors, attracting investments toward sustainable food production. They boost the capital market’s diversity and align with India’s agricultural growth and increasing global demand for livestock feed.
To invest in Animal Feed IPOs, investors need a Demat and trading account with a reputed broker like Alice Blue. Apply through stockbroker platforms or banks during the IPO subscription period and monitor the company’s growth prospects before investing.
Animal Feed IPOs can be suitable for long-term investment if the company has strong fundamentals, consistent demand and innovation in feed products, aligning with India’s livestock growth and global protein consumption trends.
Animal Feed IPOs can be profitable, offering growth opportunities due to rising livestock demand and agricultural development. Profitability depends on market conditions, company performance and effective strategies to manage costs and competition.
There is no confirmed information on upcoming Animal Feed IPOs in India. Investors should monitor announcements and market trends to stay updated on potential opportunities in this growing sector.
Access detailed reviews and analysis of Animal Feed IPOs through financial platforms like Alice Blue. Additionally, refer to SEBI prospectuses, stock exchange announcements and industry-specific reports for in-depth insights and market evaluations.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
