At a Glance
Sacheerome Ltd, a niche fragrance and flavour manufacturer, listed on June 16, 2025, with 94% of revenue from scents alone. With a nose for margins (21% OPM), near-full capacity utilization (97%), and global-standard certifications, this SME stock is no lightweight. But high customer concentration and a –28% promoter holding drop post-IPO raise some nose-pinching concerns.
👃 1. Who Are These Fragrance Folks Anyway?
If you’ve ever wondered who makes your shampoo smell like “morning dew” or your detergent “tropical rain,” chances are Sacheerome had a nose in it.
Founded in 2009 and based in Okhla Industrial Area, Delhi, Sacheerome is into:
- Fragrances: For personal care, air fresheners, fine perfumes, fabric care, pet grooming, etc.
- Flavours: Used in bakery, dairy, confectionery, shisha, oral care, and… wait for it… meat products.
They don’t sell to consumers directly — they’re the olfactory OEM of FMCG, supplying the secret sauce to the likes of cosmetic companies, detergent giants, and food brands.
🧴 2. Product Mix: Fragrance Dominates the Shelf
FY25 Revenue Split:
| Product Type | Revenue % |
|---|---|
| Fragrance | 94.96% |
| Flavours | 4.88% |
| Scrap Sale | 0.16% |
Verdict: They’re not dabbling — they are a full-blown fragrance factory. Flavours exist, but are more like the chutney on the side.
🏭 3. Manufacturing Setup – Smells Like Efficiency
- 📍 Location: Okhla Industrial Area, Delhi
- 🏭 Installed Capacity: 7.6 lakh kg annually
- ⚙️ Utilization: 97.4% in FY25
That’s shockingly high for an SME — either demand is soaring, or someone’s cooking flavours 24/7 with no weekends.
Also, the company is scaling up CWIP (Capital Work In Progress) from ₹8 Cr (FY24) to ₹28 Cr (FY25). 🏗️ Expansion alert!
🌍 4. Global Reach or Just Delhi NCR?
Mostly India. But a few drops went abroad.
Geographical Revenue (FY25):
| Region | Fragrance | Flavours |
|---|---|---|
| 🇮🇳 India | 92.37% | — |
| 🇦🇪 UAE | 2.39% | — |
| 🇧🇩 Bangladesh | 1.35% | 0.01% |
| 🇳🇬 Nigeria | 1.14% | — |
| 🌍 Other | 2.75% | 0.99% |
They do export, but the bulk is domestic. Smell local, act global — kind of.
📦 5. Financials – Are the Margins as Sweet as the Scents?
Let’s break down Sacheerome’s track record:
🧾 Revenue Growth (₹ Cr)
| FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|
| 64 | 70 | 85 | 108 |
🧼 TTM Sales Growth = 26% YoY
📦 3-Year CAGR = ~19% — strong and consistent
💰 Profit Growth (₹ Cr)
| FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|
| 5 | 6 | 11 | 16 |
🧼 TTM PAT Growth = 51%
ROE is no joke either:
ROE (FY25): 29.6%
ROCE (FY25): 38.6%
💸 Operating Margins:
- FY22: 13%
- FY23: 14%
- FY24: 18%
- FY25: 21%
They’re squeezing out profits like a roll-on deo. Zero debt. High asset turnover. Near-ideal working capital.
🔬 6. The Good Stuff — What’s Working?
✅ Strong Unit Economics
✅ Almost Debt Free
✅ Improving Margins & Working Capital
✅ Global Certifications (IFRA, ISO 9001:2015)
✅ Brand Stickiness with Top FMCG Clients
💡 They’re even members of FEMA, Chemexcil, and the Fragrances & Flavours Association of India — not just smelling nice, but talking regulatory sweet too.
🚩 7. But What Stinks?
🧨 Customer Concentration Risk:
- Top 5 customers = 49.26%
- Top 10 customers = 58.15%
If one big FMCG client walks away, things could turn sour faster than expired strawberry essence.
🧯 Promoter Holding Declined by –28.5% Post IPO
That’s not a great sign. Investors love founders who stay in for the long haul.
📈 8. IPO Drama – What’s the Scent of Day 1?
- 📆 IPO Listed: June 16, 2025
- 🎯 Issue Size: 60.4 lakh shares
- 💰 Listing Price: ₹161
- 💹 CMP: ₹161 (flat)
- 🧴 P/E: 22.5x — fair for a specialty FMCG backend business
No dramatic listing pop — but maybe that’s good. It’s not a pump-and-dump — it’s a stable first impression.
🧠 TL;DR Summary
| Metric | Value/Status |
|---|---|
| Revenue (FY25) | ₹108 Cr |
| PAT (FY25) | ₹16 Cr |
| OPM | 21% |
| ROCE / ROE | 38.6% / 29.6% |
| Capacity Utilization | 97.4% |
| Promoter Holding Change | –28.5% (🛑) |
| Customer Concentration | 🚩 Very High |
| Export Mix | Low (India 92%) |
| Market Cap | ₹359 Cr |
| CMP (Jun 16) | ₹161 |
💸 Fair Value (FV) Range – What Should Sacheerome Really Be Worth?
Let’s work it out using FY25 numbers and sector comparables:
🧾 Base Numbers
- EPS (FY25): ₹9.78
- Current P/E: 22.5
- ROE: 29.6%
- Debt: Negligible
- Margins: 21% OPM
- Client Concentration: High (risk)
🎯 Sector P/E Range:
Fragrance & flavour players (like SH Kelkar, Fine Organics) typically trade between 25x–35x in a growth phase.
But since Sacheerome:
- Has strong growth + ROE ✅
- But also high client risk + promoter dilution ❌
We apply a discounted P/E range of 20x–26x
📊 Fair Value Range:
FV = EPS × P/E range
→ ₹9.78 × 20 = ₹195
→ ₹9.78 × 26 = ₹254
✅ Fair Value Range: ₹195 – ₹254 per share
(Current Price = ₹161)
Upside Potential: 21% – 58%
Risk Flags: Client concentration, flat IPO, promoter dilution
🧴 Final Verdict – Is This a Multibagger in the Making?
Sacheerome is not your average SME stock.
It has:
- Strong fundamentals
- Global-quality product certifications
- Elite FMCG clientele
- High growth, clean books, and strong return ratios
But:
- Customer concentration is dangerously high
- Promoter trimming stake post-IPO is a mood killer
- Flat IPO listing = muted buzz
If they can diversify customer base, scale exports, and maintain high margin and utilization, Sacheerome could be the next “hidden scent” of SME success stories.
Until then — keep your nose open, and your SL tighter than your cologne cap.
✍️ Written by Prashant | 📅 June 16, 2025
Tags: Sacheerome IPO, SME Stock Analysis, Fragrance Stocks India, Sacheerome SME Recap, FMCG B2B stocks, ROCE Leaders 2025, EduInvesting SME Series
