Sawaliya Food Products Ltd IPO

About the Company Sawaliya Food Products Ltd., established in 2014 in Madhya Pradesh, is a producer of dehydrated vegetables used in cup noodles, soups, pasta, and ready-to-eat meals. The company has a 1,500 MT capacity integrated plant and exports to countries including the USA, backed by FDA and FSSAI certifications. Its procurement model relies on contract farming, enabling consistent supply and cost efficiency. The company’s zero-waste operations and in-house quality infrastructure provide it with a strong market edge.

Use of IPO Proceeds :

• Purchase of new machinery and solar PV system

• Working capital requirements

• Loan repayment (~₹4.6 crore)

• General corporate purposes

Financial Highlights :

FY 2024–25:

• Revenue: ₹34.18–34.34 crore

• PAT: ₹6.94–6.95 crore

• EBITDA: ₹12.21–12.22 crore (Margin ~35.7%)

• PAT Margin: ~20.3%

• ROCE: ~49%

• Debt-to-Equity: ~1.78x

Valuation metrics:

• EPS (Pre-IPO): ₹9.49 → Post-IPO: ₹7.00

• P/E Ratio: ~17.14x (Post-IPO), ~12.64x (Pre-IPO)

• Price-to-Book: ~6.94x

• Return on Net Worth (RONW): ~54.9%

Strengths & Risks :

Key Strengths:

• • Focused B2B FMCG market and export clientele

• • FDA/FSSAI certifications ensure product credibility

• • Integrated, zero-waste operations and solar energy usage

• • Strong regional sourcing and supply chain control

Potential Risks:

• • High customer concentration

• • Cash flow volatility

• • Seasonal and climatic dependency

• • Competitive, price-sensitive market

Industry & Leadership Insight :

MD Raghav Somani emphasized the company’s focus on expanding product lines to include dehydrated beetroot, papaya, and pumpkin. The IPO aims to strengthen operations through tech upgrades and green energy initiatives. Local sourcing and in-house cold storage are expected to boost operational efficiency.

Is It a Good Investment?

Sawaliya Food Products offers strong growth potential with a sustainable and scalable business model. With impressive financials and global market presence, it is a promising opportunity. However, investors must assess risks and review the RHP before making decisions.