Vandan Foods IPO Review

Vandan Foods Limited is a head accomplice for castor oil and its subordinates, taking care of both Indian and global business sectors. They succeed by utilizing a hearty hierarchical culture, viable control frameworks, and the skill of their workers to upgrade functional proficiency.

The Promoters Kalpeshkumar Bhagavandas Thakkar, Rakeshkumar Rameshbhai Patel, Jitendra Rameshbhai Patel and Jyotsana Jitendrabhai Patel are having combined experience of more than 10 years in Agriculture and Derivatives Business and with their innovative business ideas, indepth knowledge and excellent management skills, they have served their customers proficiently. The promoters are actively involved in day-to-day operations and looks after Sales, Purchase, Plant Operations, Finance, as well as general administration for the company.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 7,266.38 Lakh, ₹ 4,873.04 Lakh, ₹  1,159.35 Lakh and ₹ 161.13 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹  692.15 Lakh, ₹ 364.56 Lakh, ₹ 99.49 Lakh, and ₹ 5.81 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 453.59 Lakh, ₹ 264.43 Lakh, ₹ 64.28 Lakh, and ₹ -11.43 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 4.64 and post-issue EPS of ₹ 3.15 for FY24. The pre-issue P/E ratio is 24.78x, while the post-issue P/E ratio is 36.47x against the Industry P/E ratio is 15.00x. The company's ROCE for FY24 is 37.33%, ROE for FY24 is 45.41% and RoNW is 27.92%. The Annulaised EPS is ₹ 7.21 and annualised P/E Ratio is 15.94x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Vandan Foods showing listing gains of 0.00 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Vandan Foods Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.