The edible oil sector presents significant investment opportunities through notable listings like Patanjali Foods Ltd, Adani Wilmar Ltd, and Gokul Agro Resources Ltd, offering exposure to India’s growing food processing industry.
Content:
- Overview of the Edible Oil IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Edible Oil Sector IPOs
- Disadvantages of Investing in Edible Oil Sector IPOs
- Role of Edible Oil Industry in the economy
- How to invest in Edible Oil IPOs?
- Future outlook of Edible Oil IPOs in India
- E-Commerce IPOs in India – FAQ
Overview of the Edible Oil IPOs in India
The edible oil sector features prominent listings including Patanjali Foods Ltd and Adani Wilmar Ltd, demonstrating robust potential in food processing and consumer staples manufacturing nationwide.
These offerings enable investors to participate in sector growth while benefiting from increasing consumer demand, expanding distribution networks, and growing market penetration across urban and rural segments.
IPO Fundamental Analysis
Patanjali Foods Ltd
Patanjali Foods Ltd. delivered a consistent financial performance in FY24 compared to FY23, showcasing stable revenue, profitability, and financial position. The company maintained its operational momentum, reflected in its growing reserves and prudent management of liabilities and assets.
Revenue Trend: Sales increased marginally to ₹31,721 crores in FY24 from ₹31,525 crores in FY23, while expenses rose slightly to ₹30,443 crores from ₹30,244 crores, resulting in steady operating profit.
Equity and Liabilities: Equity capital remained constant at ₹72.38 crores. Reserves grew to ₹10,133 crores in FY24 from ₹9,774 crores in FY23. Total liabilities stood at ₹13,262 crores compared to ₹13,244 crores.
Profitability: Operating profit was ₹1,279 crores in FY24, close to ₹1,281 crores in FY23. OPM stood steady at 4%, reflecting consistent operational efficiency despite rising expenses.
Earnings per Share (EPS): EPS decreased slightly to ₹21.14 in FY24 from ₹24.49 in FY23, indicating slight pressure on per-share profitability despite robust revenue.
Return on Net Worth (RoNW): Net profit reduced to ₹765.15 crores in FY24 from ₹886.44 crores in FY23, impacting RoNW, driven by stable sales but higher tax and expenses.
Financial Position: Total assets stood at ₹13,262 crores in FY24 compared to ₹13,244 crores in FY23. Non-current assets increased to ₹5,488 crores, while current liabilities reduced slightly to ₹3,028 crores.
Adani Wilmar Ltd
Adani Wilmar Ltd demonstrated stable performance in FY24, reflecting a slight decline in revenue but consistent equity levels. The company continued to maintain a robust financial position despite challenges, showcasing resilience in its profitability and overall asset management.
Revenue Trend: Sales declined to ₹51,262 crores in FY24 from ₹58,185 crores in FY23, a 11.89% decrease. Expenses also reduced to ₹50,126 crores from ₹56,524 crores in FY23, aligning with revenue adjustments.
Equity and Liabilities: Equity capital remained constant at ₹129.97 crores in FY24. Reserves grew to ₹8,186 crores from ₹8,036 crores in FY23. Total liabilities slightly decreased to ₹19,807 crores from ₹20,980 crores in FY23.
Profitability: Operating profit dropped to ₹1,135 crores in FY24 from ₹1,661 crores in FY23. OPM declined to 2.20% in FY24 from 2.84%, reflecting reduced operational margins.
Earnings per Share (EPS): EPS fell to ₹1.14 in FY24, compared to ₹4.48 in FY23, reflecting lower profitability per share for the fiscal year.
Return on Net Worth (RoNW): RoNW weakened in FY24 as net profit declined to ₹147.99 crores from ₹582.12 crores in FY23, coupled with stable equity capital.
Financial Position: Total assets stood at ₹19,807 crores in FY24, down from ₹20,980 crores in FY23. Current assets decreased to ₹12,748 crores from ₹14,537 crores, while contingent liabilities reduced to ₹947.04 crores.
Gokul Agro Resources Ltd
Gokul Agro Resources Ltd reported significant growth in FY24, showcasing robust financial performance with higher revenues, improved reserves, and consistent profitability. The company demonstrated resilience, achieving solid metrics across revenue, liabilities, and shareholder returns when compared to FY23.
Revenue Trend: Revenue increased to ₹13,854 crores in FY24 from ₹10,740 crores in FY23, a 29% growth. Expenses rose to ₹13,559 crores from ₹10,458 crores, maintaining operational efficiency.
Equity and Liabilities: Equity capital remained constant at ₹29.51 crores in FY24. Reserves surged to ₹756.79 crores from ₹621.10 crores, while total liabilities increased to ₹3,207 crores from ₹2,121 crores.
Profitability: Operating profit increased marginally to ₹295.25 crores in FY24 from ₹281.53 crores in FY23. OPM decreased slightly to 2.13% from 2.62%, reflecting stable operational performance.
Earnings per Share (EPS): EPS grew to ₹9.20 in FY24, up from ₹8.97 in FY23, reflecting enhanced returns for shareholders.
Return on Net Worth (RoNW): The company’s RoNW improved with a net profit of ₹135.76 crores in FY24, compared to ₹132.41 crores in FY23, showcasing consistent growth in profitability.
Financial Position: Total assets increased to ₹3,207 crores in FY24 from ₹2,121 crores in FY23, driven by current assets rising to ₹2,429 crores and non-current assets growing to ₹778.13 crores. Contingent liabilities were eliminated in FY24.
IPO Financial Analysis
Patanjali Foods Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 31,721 | 31,525 | 24,205 |
| Expenses | 30,443 | 30,244 | 22,718 |
| Operating Profit | 1,279 | 1,281 | 1,487 |
| OPM % | 4 | 4.02 | 6.12 |
| Other Income | 240.27 | 296.8 | 79.01 |
| EBITDA | 1,519 | 1,577 | 1,566 |
| Interest | 189.90 | 238.85 | 355 |
| Depreciation | ₹ 269 | ₹ 160 | ₹ 137 |
| Profit Before Tax | 1,060 | 1,179 | 1,074 |
| Tax % | 27.82 | 24.81 | 24.95 |
| Net Profit | 765 | 886.44 | 806 |
| EPS | 21.14 | 24.49 | 27.26 |
| Dividend Payout % | 28.38 | 25 | 18 |
Adani Wilmar Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 51,262 | 58,185 | 54,214 |
| Expenses | 50,126 | 56,524 | 52,477 |
| Operating Profit | 1,135 | 1,661 | 1,736 |
| OPM % | 2.2 | 2.84 | 3.19 |
| Other Income | 240.10 | 261.35 | 172.34 |
| EBITDA | 1,429 | 1,922 | 1,909 |
| Interest | 749.11 | 774.92 | 541 |
| Depreciation | ₹ 364 | ₹ 358 | ₹ 309 |
| Profit Before Tax | 262 | 789 | 1,059 |
| Tax % | 34.97 | 29.83 | 26.86 |
| Net Profit | 148 | 582.12 | 804 |
| EPS | 1.14 | 4.48 | 6.18 |
Gokul Agro Resources Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 13,854 | 10,740 | 10,391 |
| Expenses | 13,559 | 10,458 | 10,166 |
| Operating Profit | 295 | 282 | 225 |
| OPM % | 2.13 | 2.62 | 2.16 |
| Other Income | 31.67 | 16.79 | 16.6 |
| EBITDA | 327 | 298 | 242 |
| Interest | 117.67 | 94.73 | 56 |
| Depreciation | ₹ 32 | ₹ 29 | ₹ 29 |
| Profit Before Tax | 177 | 175 | 156 |
| Tax % | 23.45 | 24.22 | 21.2 |
| Net Profit | 136 | 132.41 | 123 |
| EPS | 9.2 | 8.97 | 8.59 |
About the Company
Patanjali Foods Ltd
Patanjali Foods Ltd, established in 1986, is a leading Indian FMCG brand offering healthy foods and edible oils. The company’s diverse product range includes soya foods, biscuits, cookies, and other whole-wheat and natural ingredient-based items.
The company exports soya-based nutritional products to over 60 countries and maintains a significant presence in the domestic market. Patanjali Foods is widely recognized for its commitment to quality and affordability, making it a household name in India.
Adani Wilmar Ltd
Adani Wilmar Ltd, founded in 1999, is a joint venture between the Adani Group and Wilmar International. It specializes in edible oils, food products, and industrial essentials, providing kitchen commodities to Indian households.
Its product portfolio includes cooking oils, rice, pulses, flour, sugar, and soybean foods. With a vast distribution network and focus on quality, Adani Wilmar is a prominent player in India’s FMCG sector, catering to diverse consumer needs.
Gokul Agro Resources Ltd
Gokul Agro Resources Ltd, incorporated in 2014, focuses on the production, distribution, and export of edible and non-edible oils and derivatives. Its products meet FSSC 22000:2024 quality standards.
The company plays a vital role in India’s food and agro-processing industry. Gokul Agro’s commitment to quality and innovation has solidified its position as a reliable supplier in domestic and international markets.
Advantages of Investing in Edible Oil Sector IPOs
The main advantages include exposure to India’s essential consumer goods market, stable demand patterns, brand value creation, and strategic market positioning through established companies like Patanjali Foods Ltd.
1. Consumer Essentials: The sector benefits from consistent demand, essential product nature, growing population needs, increasing health consciousness, and expanding product portfolio opportunities.
2. Distribution Network: Established supply chains, widespread retail presence, strong dealer networks, and efficient logistics enable market penetration and steady revenue growth.
3. Brand Value: Strong brand recognition, quality assurance, consumer trust, and product diversification capabilities enhance market position and pricing power.
Disadvantages of Investing in Edible Oil Sector IPOs
The main challenges include raw material price volatility, import dependencies, regulatory controls, and margin pressures, as demonstrated in the performance metrics of companies like Adani Wilmar Ltd.
1. Raw Material Volatility: Companies face significant impacts from fluctuating commodity prices, international market dynamics, seasonal variations, supply chain disruptions, and currency exchange rate fluctuations.
2. Government Regulations: Price controls, import policies, quality standards compliance, packaging regulations, and frequent policy changes affect operational flexibility and profit margins.
3. Competition Intensity: Market rivalry from established brands, regional players, private labels, and unorganized sectors requires continuous investment in marketing and distribution networks.
Role of Edible Oil Industry in the economy
The edible oil sector drives economic growth through agricultural sector support, employment generation, rural development, and contribution to food security nationwide.
The industry promotes backward integration, supports farmer incomes, enhances processing capabilities, reduces import dependencies, and strengthens India’s food processing infrastructure.
How to invest in Edible Oil IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements, and thoroughly research upcoming edible oil sector IPOs through detailed fundamental analysis.
Monitor SEBI announcements, company prospectuses, market conditions, and sector trends, and maintain required funds for a timely subscription while following systematic investment approaches.
Future outlook of Edible Oil IPOs in India
The edible oil sector demonstrates promising growth potential with increasing consumption patterns, health awareness trends, product diversification opportunities, and expanding market reach.
Industry modernization, processing technology enhancement, and market expansion initiatives indicate positive prospects for future IPOs, supported by growing domestic consumption requirements.
E-Commerce IPOs in India – FAQ
Edible oil IPOs represent the first public offerings from food processing companies, like Patanjali Foods Ltd and Adani Wilmar Ltd, enabling investor participation in consumer essentials growth.
Major listings include Patanjali Foods Ltd, Adani Wilmar Ltd, and Gokul Agro Resources Ltd, offering investors exposure to edible oil manufacturing and distribution networks.
Edible oil sector IPOs provide strategic investment opportunities in India’s consumer staples market, with companies like Patanjali Foods Ltd demonstrating the potential for sustainable growth.
Patanjali Foods Ltd marks a significant milestone as a prominent edible oil sector public offering, showcasing strong market interest and setting industry valuation benchmarks.
Begin by opening a trading account through Alice Blue, completing comprehensive KYC requirements, analyzing market conditions, studying company fundamentals, and maintaining adequate subscription funds.
Edible oil sector IPOs offer substantial long-term growth potential, supported by India’s growing population, increasing consumption patterns, and essential nature of products.
Historical performance indicates strong profitability potential, though returns depend on commodity prices, regulatory environment, operational efficiencies, and company-specific distribution strengths.
Market observers anticipate new edible oil sector IPOs, driven by industry expansion needs, modernization requirements, and growing market opportunities. Following successful listings like Patanjali Foods Ltd, new companies seek capital for growth and expansion.
Access comprehensive research and analysis through Alice Blue’s dedicated research portal, along with additional information from financial websites, SEBI documentation, and industry reports.
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.
