Introduction

Vandan Foods Limited, a key player in castor oil and its derivatives, is entering the public markets with its IPO on the BSE SME platform. The company has displayed impressive growth in revenue and profitability over recent years but may face challenges related to high valuation at the IPO price.

IPO Details

Company Background

Vandan Foods Limited, founded with the aim to cater to both domestic and international demand for castor oil and its byproducts, has established itself as a reliable partner in the agri-derivatives space. The company prides itself on strong organizational culture, efficient internal controls, and employee expertise that contribute to overall operational excellence.

They serve customers globally and offer castor oil derivatives, which are extensively used in industrial, cosmetic, and pharmaceutical sectors.

Promoters & Management

Promoted by:

• Kalpeshkumar Bhagavandas Thakkar

• Rakeshkumar Rameshbhai Patel

• Jitendra Rameshbhai Patel

• Jyotsana Jitendrabhai Patel

These promoters bring over a decade of experience in agriculture and derivatives businesses and are actively involved in all aspects of business operations including sales, finance, administration, and plant management.

Financial Performance (₹ in Lakh)

✅ Strong year-over-year growth in both revenue and profitability is evident, showcasing the company’s scalability and operational strength.

Valuation & Key Ratios

📉 Despite solid financial growth, the post-issue P/E of 36.47x appears expensive compared to the industry average of 15x, indicating aggressive valuation.

GMP (Grey Market Premium) Insight

• Current GMP: ₹0

• Expected Listing Gain: 0.00%

• The GMP suggests muted investor interest, possibly due to overvaluation and broader SME market volatility.

🔎 GMP is an unofficial indicator and should not be solely relied upon. Actual listing price may vary.

Strengths

• Rapid revenue growth in 3 years of operations.

• Experienced promoters and efficient management.

• High ROE and ROCE, indicating operational efficiency.

• Growing demand for castor oil derivatives in international markets.

Risks & Concerns

• High post-issue valuation with limited GMP support.

• SME IPOs carry lower liquidity, increasing risk for retail investors.

• Global market dependency and commodity price fluctuations may affect profitability.

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  Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to consult with certified financial advisors and read all documents carefully before making investment decisions. Market conditions are subject to change.

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