Swasth Foodtech India Limited IPO

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Swasth Foodtech India Limited is engaged in the processing of rice bran oil from crude oil, catering primarily to oil manufacturers and packers. The company produces various grades and colors of rice bran oil customized to meet specific customer requirements.

Rice bran oil is recognized for its health benefits, as it contains an ideal balance of polyunsaturated fats (PUFAs) and monounsaturated fats (MUFAs) in a 1:1 ratio. This composition makes it a healthier alternative compared to other edible oils. Additionally, the oil is rich in Vitamin E (an antioxidant) and Oryzanol, which contributes to various health benefits, including:
i. Heart health support
ii. High smoke point, making it ideal for stir-frying, sautéing, and high-heat cooking
iii. Neutral flavor, making it a versatile choice for multiple culinary applications

Revenue Model & Byproducts

The company has structured its business model to ensure revenue generation from both finished products (rice bran oil) and byproducts obtained during the refining process. In addition to selling rice bran oil, the company markets and sells:
i. Fatty acids                             ii. Gums                                 iii. Spent earth                           iv. Wax

These byproducts have applications in various industries, including cosmetics, pharmaceuticals, and animal feed, adding an additional revenue stream for the company.

Conclusion

Swasth Foodtech India Limited operates in the growing rice bran oil market, leveraging the increasing consumer preference for healthier cooking oils. With a diversified revenue model that includes both primary products and byproducts, the company is well-positioned to serve oil manufacturers and packers while capitalizing on the increasing demand for rice bran oil.

Objects of the Swasth Foodtech India Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Setting up of a packing line at the existing manufacturing unit ii. Funding of working capital requirements of the Company iii. General Corporate Purposes.
DRHP of Swasth Foodtech India Limited IPO
RHP of Swasth Foodtech India Limited IPO

Swasth Foodtech India Limited IPO Details:

Open Date: Feb 19 2025
Close Date: Feb 21 2025
Total Shares: 15,87,600
Face Value: ₹ 10 Per Equity Share
Issue Size: 14.92 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 94 Per Equity Share
Listing At: BSE SME
Listing Date: Feb 26 2025

Promoters And Management:

Dilip Chhajer, 57, is the Promoter and Managing Director of the Company. A commerce graduate from the University of Calcutta, he has over 25 years of experience in edible oil manufacturing, trading, cold storage, and agriculture crops. He has been instrumental in the company's growth and oversees its overall management and operations. Shrey Jain, 26, is the Promoter, Whole-time Director, and CFO of the Company. A business administration graduate from Christ University with a postgraduate diploma in finance from Symbiosis, he previously worked at Wipro as a senior executive. With over five years of experience in finance and accounts, he has been instrumental in shaping the company's growth strategy and oversees its financial operations. Lakshay Jain, 22, is a Promoter and Whole-time Director of the Company. An engineering graduate from Thapar Institute, he has been instrumental in shaping the company's vision and expanding its business model. He currently oversees the company's production operations.

Financials of Swasth Foodtech India Limited IPO:

In Cr.
Particulars Sep 30, 2024 March 31, 2024 March 31, 2023 March 31, 2022
Revenue from Operations 88.28 133.24 99.89 1.22
EBITDA 3.48 4.72 1.89 0.02
EBITDA Margins 3.95% 3.52% 1.90% 1.98%
PAT 1.82 1.93 0.02 0.01
PAT Margins 2.07% 1.44% 0.03% 0.93%
ROCE 13.48% 5.11% 0.22%
D/E ratio 2.92 3.75 7.87 2.64
CFOA 0.43 0.36 -12.27 0.05

Comparison With Peers:

Companies Revenue EBITDA Margins PAT Margins D/E Ratio MCap P/E
Swasth Foodtech India      (FY 2024) 133.24 Cr. 3.52% 1.44% 3.75 55.05 Cr. 28.52
Halder Ventres (TTM) 950 Cr. 6% 4.21% 4.22 196 Cr. 4.90
Sarveshwar Foods (TTM) 1,034 Cr. 7% 2.12 1.05 670 Cr. 29.90

Recommendation on Swasth Foodtech India Limited IPO:

Review and Recommendation of Swasth Foodtech India IPO by team IZ is 2/10.

Lead Manager of Swasth Foodtech India Limited IPO:

  1. Horizon Financial Pvt Ltd

Registrar of Swasth Foodtech India Limited IPO:

  1. MAS Services limted

Company Address:

Swasth Foodtech India Limited Baro Chowmata Belari, Guskara, Purba Burdwan, Bardhaman – 713 141 Phone: +91 890 073 8769 Email: info@swasthfoodtech.com Website: https://www.swasthfoodtech.com/

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