The FMCG sector presents significant investment opportunities through notable listings like Annapurna Swadisht Ltd, KN Agri Resources Ltd, and Proventus Agrocom Ltd, offering exposure to India’s consumer goods market.
Content:
- Overview of the FMCG IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in FMCG Sector IPOs
- Disadvantages of Investing in FMCG Sector IPOs
- Role of FMCG Industry in the economy
- How to invest in FMCG IPOs?
- Future outlook of FMCG IPOs in India
- FMCG IPOs in India – FAQ
Overview of the FMCG IPOs in India
The FMCG sector features prominent listings including Annapurna Swadisht Ltd and KN Agri Resources Ltd, demonstrating robust potential in consumer goods manufacturing and distribution nationwide.
These offerings enable investors to participate in sector growth while benefiting from increasing consumer demand, expanding rural penetration, and growing market presence across various product segments.
IPO Fundamental Analysis
Annapurna Swadisht Ltd
Annapurna Swadisht Ltd. demonstrated significant growth in FY24, showcasing improved revenues, profitability, and financial position. The company’s operational efficiency and strategic expansion have strengthened its financial metrics, positioning it as a promising player in its industry.
Revenue Trend: Revenue increased sharply to ₹263 crores in FY24 from ₹160 crores in FY23, marking a 64% growth. Expenses also rose to ₹235 crores in FY24 from ₹147 crores in FY23.
Equity and Liabilities: Equity capital expanded to ₹22 crores in FY24 from ₹18 crores in FY23. Reserves surged to ₹267 crores, while total liabilities doubled to ₹444 crores from ₹232 crores.
Profitability: Operating profit climbed to ₹28 crores in FY24 from ₹13 crores in FY23. The OPM improved to 11% from 8%, reflecting enhanced operational efficiency and cost management.
Earnings per Share (EPS): EPS rose to ₹9.94 in FY24, a substantial increase from ₹8.08 in FY23, indicating improved profitability and better returns for shareholders.
Return on Net Worth (RoNW): RoNW for FY24 was 17%, showcasing strong performance compared to prior years. This highlights the company’s efficient utilization of equity capital.
Financial Position: Total assets increased to ₹444 crores in FY24 from ₹232 crores in FY23. Fixed assets grew to ₹67 crores, and borrowings rose to ₹87 crores, supporting operational and strategic expansions.
KN Agri Resources Ltd
KN Agri Resources Ltd. demonstrates a steady performance across key financial metrics in FY24 compared to FY23, showcasing resilience in profitability, equity growth, and operational stability. The company’s financials reflect its adaptability amidst changing market conditions and evolving operational challenges.
Revenue Trend: Sales declined to ₹1,691 crores in FY24 from ₹2,224 crores in FY23, showing a 24% drop. Expenses also decreased to ₹1,643 crores in FY24 from ₹2,172 crores in FY23.
Equity and Liabilities: Equity capital remained stable at ₹25 crores in FY24. Reserves increased to ₹289 crores from ₹257 crores. Total liabilities rose to ₹454 crores in FY24, compared to ₹381 crores in FY23.
Profitability: Operating profit stood at ₹48 crores in FY24, down from ₹52 crores in FY23. OPM improved slightly to 3% in FY24 from 2% in FY23, indicating efficient expense management.
Earnings per Share (EPS): EPS increased to ₹12.41 in FY24 from ₹10.83 in FY23, reflecting better net profit distribution per share despite challenges in revenue generation.
Return on Net Worth (RoNW): RoNW slightly declined to 10% in FY24 compared to 14% in FY23, driven by lower revenue growth and operating performance.
Financial Position: Total assets increased to ₹454 crores in FY24 from ₹381 crores in FY23. Reserves growth and investment in assets signify long-term financial stability and robust balance sheet management.
Proventus Agrocom Ltd
Proventus Agrocom Ltd demonstrated significant growth in FY24, reflected by increased sales, profits, and reserves. This performance highlights the company’s steady expansion and operational efficiency. The balance sheet shows robust financial health, supported by increased assets and improved liabilities management.
Revenue Trend: Sales rose to ₹497 crores in FY24 from ₹419 crores in FY23, a 18.61% growth. Expenses increased to ₹489 crores from ₹412 crores, maintaining stable operating profit at ₹7 crores.
Equity and Liabilities: Equity capital remained constant at ₹3 crores. Reserves nearly doubled, growing from ₹61 crores in FY23 to ₹119 crores in FY24. Total liabilities increased to ₹142 crores from ₹102 crores.
Profitability: Operating profit stayed steady at ₹7 crores in FY24, while net profit surged to ₹7 crores from ₹4 crores in FY23. Profit before tax climbed to ₹9 crores from ₹5 crores.
Earnings per Share (EPS): EPS rose to ₹21.08 in FY24, showcasing a significant improvement from ₹12.99 in FY23, signaling better returns for shareholders.
Return on Net Worth (RoNW): RoNW held steady at 4% in FY24, aligning with FY23, supported by the increase in reserves and stable net profit.
Financial Position: Total assets grew to ₹142 crores in FY24 from ₹102 crores in FY23, with fixed assets increasing to ₹4 crores and other assets rising to ₹133 crores. Borrowings reduced significantly to ₹2 crores.
IPO Financial Analysis
Annapurna Swadisht Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 263.00 | 160.00 | 12.00 |
| Expenses | 235.00 | 147.00 | 11.00 |
| Operating Profit | 28.00 | 13.00 | 1.00 |
| OPM % | 0.11 | 0.08 | 0.08 |
| Other Income | 0.00 | 0.00 | 0.00 |
| Interest | 6.00 | 2.00 | 0.00 |
| Depreciation | 4.00 | 2.00 | 0.00 |
| Profit before tax | 19.00 | 10.00 | 1.00 |
| Tax % | 0.25 | 0.28 | 0.24 |
| Net Profit | 14.00 | 7.00 | 1.00 |
| EPS in Rs | 8.08 | 4.35 | 55.00 |
KN Agri Resources Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,691.00 | 2,224.00 | 1,872.00 |
| Expenses | 1,643.00 | 2,172.00 | 1,806.00 |
| Operating Profit | 48.00 | 52.00 | 66.00 |
| OPM % | 0.03 | 0.02 | 0.04 |
| Other Income | 6.00 | 2.00 | 4.00 |
| Interest | 9.00 | 9.00 | 2.00 |
| Depreciation | 4.00 | 4.00 | 4.00 |
| Profit before tax | 42.00 | 40.00 | 64.00 |
| Tax % | 0.26 | 0.27 | 0.26 |
| Net Profit | 31.00 | 27.00 | 47.00 |
| EPS in Rs | 12.41 | 10.83 | 18.87 |
Proventus Agrocom Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 497.00 | 419.00 | 403.00 |
| Expenses | 489.00 | 412.00 | 399.00 |
| Operating Profit | 7.00 | 7.00 | 5.00 |
| OPM % | 0.01 | 0.02 | 0.01 |
| Other Income | 5.00 | 1.00 | 0.00 |
| Interest | 2.00 | 3.00 | 2.00 |
| Depreciation | 1.00 | 1.00 | 1.00 |
| Profit before tax | 9.00 | 5.00 | 2.00 |
| Tax % | 0.19 | 0.20 | 0.27 |
| Net Profit | 7.00 | 4.00 | 1.00 |
| EPS in Rs | 21.08 | 12.99 | 4.14 |
About the Company
Annapurna Swadisht Ltd
Annapurna Swadisht Ltd, established in 2015, is an Indian food manufacturing company specializing in snacks and sweets. Its product range includes fryums, cakes, candies, namkeen, chips, and Gohona Bori.
The company maintains a robust distribution network with approximately 137 stockists and 687 distributors across Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, and Odisha, catering to a diverse customer base.
KN Agri Resources Ltd
Incorporated in 1987, KN Agri Resources Ltd is an integrated agribusiness and food company in India. It operates across the farm-to-consumer food chain, engaging in purchasing, storing, processing, packaging, and marketing agricultural commodities, vegetable oils, and food products.
The company’s infrastructure includes three seed processing units, two oil refineries, and a flour mill, primarily located in Madhya Pradesh. Its product portfolio encompasses soya de-oiled cake, refined soya bean oil, and wheat flour, serving both domestic and international markets.
Proventus Agrocom Ltd
Proventus Agrocom Ltd is an Indian company engaged in the processing and trading of agricultural commodities. Its operations include sourcing, processing, and marketing a variety of agro-products, contributing to the country’s food supply chain.
The company focuses on quality assurance and sustainable practices, aiming to meet the demands of both domestic and international markets. Its commitment to excellence positions it as a reliable player in the agro-processing industry.
Advantages of Investing in FMCG Sector IPOs
The main advantages of Investing in FMCG Sector IPOs include exposure to India’s growing consumer market, stable revenue streams, brand value creation, and strategic market positioning through established companies like Annapurna Swadisht Ltd.
1. Consumer Essentials: The sector benefits from consistent demand, essential product nature, growing population needs, increasing disposable incomes, and expanding product portfolio opportunities.
2. Distribution Strength: Established supply chains, widespread retail presence, strong dealer networks, and efficient logistics enable market penetration and steady revenue growth.
3. Brand Power: Strong brand recognition, consumer trust, quality assurance, and product diversification capabilities enhance market position and pricing flexibility.
Disadvantages of Investing in FMCG Sector IPOs
The main disadvantages of Investing in FMCG Sector IPOs include raw material price volatility, competitive pressures, margin constraints, and distribution costs, as demonstrated in the performance metrics of companies like KN Agri Resources Ltd.
1. Input Cost Fluctuations: Companies face significant impacts from raw material price variations, packaging costs, transportation expenses, storage requirements, and supply chain disruptions affecting margins.
2. Market Competition: Intense rivalry from established brands, regional players, private labels, and unorganized sectors requires continuous investment in marketing and distribution networks.
3. Rural Penetration: Expanding into rural markets requires significant infrastructure investment, distribution network development, and marketing efforts impacting short-term profitability margins.
Role of FMCG Industry in the economy
The FMCG sector drives economic growth through extensive employment generation, rural market development, supply chain creation, and support to the agricultural sector nationwide.
The industry promotes local manufacturing, enhances distribution infrastructure, creates entrepreneurship opportunities, and strengthens India’s consumer goods manufacturing capabilities.
How to invest in FMCG IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements, and thoroughly research upcoming FMCG 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 FMCG IPOs in India
The FMCG sector demonstrates promising growth potential with increasing consumer spending, rural market penetration, product innovation opportunities, and expanding distribution networks.
Industry modernization, manufacturing enhancement, and market expansion initiatives indicate positive prospects for future IPOs, supported by growing consumption patterns nationwide.
FMCG IPOs in India – FAQ
FMCG sector IPOs represent the first public offerings from consumer goods companies, like Annapurna Swadisht Ltd and Proventus Agrocom Ltd, enabling participation in consumer market growth.
Major listings include Annapurna Swadisht Ltd, KN Agri Resources Ltd, and Proventus Agrocom Ltd, offering investors exposure to consumer goods manufacturing and distribution.
FMCG sector IPOs provide strategic investment opportunities in India’s consumer market, with companies like Annapurna Swadisht Ltd demonstrating the potential for sustainable growth.
Annapurna Swadisht Ltd marks a significant milestone as a prominent FMCG 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.
FMCG sector IPOs offer substantial long-term growth potential, supported by India’s growing population, increasing disposable incomes, and expanding consumer product demands.
Historical performance indicates strong profitability potential, though returns depend on brand strength, distribution networks, operational efficiencies, and company-specific market penetration.
Market observers anticipate new FMCG sector IPOs, following successful listings like KN Agri Resources Ltd, driven by growing consumer demand and market 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.
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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.
