Swasth Foodtech India Limited ( BSE SME IPO ) Analysis - IPO Details - IPO Date: 20 - 24 Feb 2025 Issue Price: ₹94 ( Fixed Price ) Lot Size: 1,200 Shares Face Value: ₹10 IPO Size: ₹14.92 Crores ( Full Fresh ) Lead Manager: Horizon Management Private Ltd 1. Business Overview - Core Business Activity - The company processes edible rice bran oil from crude oil. Supplies to edible oil manufacturers and packers. Business Model - Generates revenue from - Primary Product: Rice Bran Refined Oil. By-products: Fatty acids, gums, spent earth, wax. Proposed Use of IPO Funds - Packing Line Setup – ₹3.29 Crores Working Capital – ₹7.5 Crores General Corporate Purposes – ₹2.2 Crores 2. Financial Overview - Net Worth - H1FY25: ₹8.07 Crores FY24: ₹6.24 Crores FY23: ₹3.03 Crores Revenue from Operations - H1FY25: ₹88.29 Crores FY24: ₹133.25 Crores FY23: ₹99.90 Crores Profit After Tax ( PAT ) ( Crore ) - H1FY25: ₹1.83 ( Margin - 2.07% ) FY24: ₹1.93 ( Margin - 1.44% ) FY23: ₹0.03 ( Margin - 0.03% ) Earnings Per Share ( EPS ) - H1FY25: ₹4.28 FY24: ₹5.03 FY23: ₹0.09 Net Asset Value ( NAV ) per Share - H1FY25: ₹18.90 FY24: ₹14.62 FY23: ₹10.13 Debt & Borrowings - H1FY25: ₹23.60 Crores FY24: ₹23.39 Crores FY23: ₹23.82 Crores Return on Net Worth ( RONW ) - H1FY25: 22.67% FY24: 30.97% FY23: 0.89% Debt-Equity Ratio - H1FY25: 2.92 FY24: 3.75 FY23: 7.87 Pros / Strengths - Growth in Revenue & Profitability - Revenue increased from ₹99.90 Crores ( FY23 ) to ₹133.25 Crores ( FY24 ). PAT increased from ₹0.03 Crores ( FY23 ) to ₹1.93 Crores ( FY24 ). Reasonable Valuation - P/E Ratio post-IPO is around 15.05x, making it fairly priced. Improvement in Debt-Equity Ratio - Reduced from 7.87 ( FY23 ) to 2.92 ( H1FY25 ), indicating better financial management. Positive Cash Flow from Operating Activities ( Recent Years ) - H1FY25: ₹43.80 Lakhs FY24: ₹36.08 Lakhs Cons / Weaknesses & Risks - Revenue Concentration Risk - 92% revenue from just 4 states ( H1FY24 ) - #West Bengal: ₹44.55 Cr ( 50.46% ) #Rajasthan: ₹17.24 Cr ( 19.53% ) #UttarPradesh: ₹11.75 Cr ( 13.31% ) #Bihar: ₹8.69 Cr ( 9.85% ) High dependency on key customers - Top 10 customers contribute 61.33% of revenue. Top 3 customers alone contribute 35% of revenue. Major Customer Dependence - Vijay Solvex Limited: ₹16 Cr ( 18.52% ) Gokul Agri International Limited: ₹11.58 Cr ( 13.13% ) Shree Narsingh Udyog: ₹4.72 Cr ( 5.35% ) If any major customer stops buying, the company may face huge losses. History of Negative Cash Flow - FY23: Significant negative cash flow ( -₹12.27 Crores ). Commodity Price Risk - Rice bran oil is a commodity product, subject to price fluctuations due to: Global supply & demand changes. Raw material price variations. Weather & crop yield impacts. Government policies & trade disputes. High Debt Levels - Debt-Equity Ratio: 2.92 ( H1FY25 ), though improving, still high. Total Borrowings: ₹23.60 Crores. Limited Workforce - Only 17 employees managing the entire business. Single-Product Dependency - Manufactured Rice Bran Oil contributes 89.20% of revenue ( H1FY25 ). Highly vulnerable to competition in the edible oil market. Conclusion - Ideal for High-Risk Investors - If you are comfortable with sector risks, customer concentration risks, and debt levels, this IPO might be worth considering due to its reasonable valuation and revenue growth. ❌ Avoid if You Prefer Stability - The company depends too much on a few customers & regions, faces commodity price risks, and has high debt. Edible oil is a highly competitive industry, making long-term sustainability uncertain. High-risk, high-reward IPO – suitable for investors with risk appetite but not for conservative investors. I am Not Sebi Registered ...Views are Personal . DYDD Apply Or Avoid Final Decision Upto 24 Feb ,,, 2 P.M #Swasth #Edibleoil #Smeipo #Ipaalert