🧃 ā€œHerbal Hustle or Health Halo?ā€ — Walpar Nutrition’s ₹72 Cr Ayurvedic Adventure

🧃 ā€œHerbal Hustle or Health Halo?ā€ — Walpar Nutrition’s ₹72 Cr Ayurvedic Adventure

🧠 At a Glance

Walpar Nutrition is a small-cap contract manufacturer of nutraceuticals and herbal supplements. FY25 revenue hit ₹72 Cr with a 51% profit CAGR, and ROE improved to 15%. But it’s still a ₹48 Cr microcap trading at 2.9x book, with interest capitalizations, soft margins, and a halo that may not be backed by cash flow purity.


1. 🌿 Introduction – Herbal Life, But Make It SME?

You’ve seen influencer videos about ashwagandha gummies, keto supplements, and brain-boosting ayurvedic pills.

But did you know many of them are not made by big brands—but outsourced to low-key contract manufacturers like Walpar Nutrition?

This ₹47 Cr microcap from Gujarat claims to:

  • Build herbal & dietary supplement brands
  • Manufacture private label products
  • Sell through online & direct B2B channels

And while its profits are rising… the valuation and accounting clarity are questionable.

So is this the next Zydus Wellness, or just a powdered pipe dream?


2. 🧪 WTF Do They Even Do?

šŸ“¦ Core Biz: Contract manufacturing for herbal, nutraceutical & ayurvedic products

They make:

  • Capsules
  • Powders
  • Syrups
  • Sachets
  • Gummies

šŸ‘” Client Model:

  • Private label manufacturing
  • Some proprietary products
  • Online + offline distribution, but limited branding

šŸ“ R&D-driven? Maybe.
šŸ“ B2B focused? Definitely.
šŸ“ Brand moat? Not yet.


3. šŸ“ˆ Financials – Solid Growth, But Thin Layers

MetricFY23FY24FY25
Revenue (₹ Cr)35.162.571.8
Net Profit (₹ Cr)0.811.942.79
OPM (%)9.93%7.60%7.97%
ROE (%)11.2%*15.1%
ROCE (%)8.8%12.7%16.1%

🧠 3-Year Revenue CAGR = 39%
🧠 3-Year PAT CAGR = 84%

But — margins dropped post-FY23, and FY25 net profit rose only ~45% YoY.


4. šŸ’ø Valuation – Cheap Supplement or Overhyped Capsule?

CMP = ₹50.8
🧪 MCap = ₹47.8 Cr
šŸ“Š P/E = 20.6x
šŸ“š P/BV = 2.88x (Book Value: ₹17.6)

🧠 Fair Value Range = ₹38–₹46

Assuming sustainable PAT ₹2.8–3 Cr and 15–17x P/E multiple (due to size, risk, and unbranded model)

Right now, it’s priced like a niche D2C health brand—not a backend CDMO.


5. šŸ”„ What’s Cooking – News, Buzz & Balance Sheet Herbs

🧾 Latest Buzz:

  • FY25 audit report: āœ… ā€œUnmodifiedā€
  • Clarification sought by NSE (June 2025)
  • Net cash flow barely ₹1 Cr, even after ₹2.79 Cr PAT

Nothing scandalous. But also nothing that screams re-rating trigger.


6. 🧾 Balance Sheet – Light Assets, Heavy Questions

FYEquityReservesDebtTotal Assets
FY23₹4.54 Cr₹7.2 Cr₹10.3 Cr₹34.3 Cr
FY25₹9.4 Cr₹7.2 Cr₹7.85 Cr₹47.4 Cr

šŸ”Ž Key Points:

  • Equity doubled (likely fundraising)
  • Reserves stayed flat → profits not retained?
  • Assets up ₹13 Cr in 2 years
  • Fixed Assets = ₹10.7 Cr → capex-driven scale-up

But CFO over FY25 = just ₹4 Cr.
Doesn’t match ₹5.7 Cr operating profit. Where’s the rest?


7. šŸ’µ Cash Flow – Better, But Not Bulletproof

YearCFO (₹ Cr)CFI (₹ Cr)CFF (₹ Cr)Net Cash
FY23+₹1.1 Cr-₹3.4 Cr+₹2.4 Cr+₹0.07 Cr
FY24+₹5.35 Cr-₹3.6 Cr-₹1.77 Cr-₹0.03 Cr
FY25+₹4.06 Cr-₹2.3 Cr-₹0.68 Cr+₹1.08 Cr

šŸ‘€ It’s improving, but not free cash flow positive after growth capex.

šŸ’„ Bonus concern: Screener flags possible interest capitalization (masking real costs?)


8. šŸ“Š Ratios – Healthy Margins, Low Pulse on Moat

MetricFY25
ROE15.1%
ROCE16.1%
OPM7.97%
Debtor Days108
Inventory Days68
Payable Days108
Cash Conv. Cycle67
Working Cap Days64.1

šŸ“‰ Working capital improving
āœ… Cycle under 3 months now
āš ļø But debtor days still on the higher end for CDMO


9. šŸ“‰ P&L Breakdown – Not Bad, Not Breakthrough

FY25 Summary:

  • Sales: ₹71.76 Cr
  • EBITDA: ₹5.72 Cr
  • Net Profit: ₹2.79 Cr
  • EPS: ₹2.47
  • Dividend: None

Margins are mid-range. No high-end pricing power, no deep cost efficiency.


10. āš”ļø Peer Comparison – Pharma Big Boys vs Herbal Halwa

CompanyP/EROE %Sales (Cr)PAT (Cr)
Sun Pharma34.816.952,5782,389
Cipla23.517.827,5471,214
Zydus21.321.323,2411,255
Walpar Nutrition20.615.1722.79

šŸ’Š Walpar trades at similar P/E to giants — but offers:

  • No R&D moat
  • No brand
  • No global regulatory approvals
  • Just CDMO + herbal

11. šŸ‘„ Shareholding – Who Believes in the Ayurveda?

DatePromoter Holding
Sep 202171.0%
Mar 202568.5%

āœ”ļø Stable promoter holding
āŒ No institutional holding
šŸ‘€ Public float = ~31% retail

No exit drama. But also no smart money entering yet.


12. 🧠 EduInvesting Verdictā„¢

Walpar is a rare SME with:
āœ… Profit growth
āœ… Decent ROE/ROCE
āœ… Clean books
āœ… Improving cash flow

But…

āŒ Thin margins
āŒ No consumer brand
āŒ High valuation for a backend CDMO
āŒ Still dependent on private label clients

Verdictā„¢:
ā€œLooks healthy, but maybe that’s just the packaging. Ayurvedic supplement outside, SME valuation risk inside.ā€

If it pivots to branded nutraceuticals, the game changes.
Right now, it’s solid—but not swoon-worthy.


šŸ·ļø Tags:

Walpar Nutrition, nutraceutical stocks India, SME CDMO, ayurvedic SME analysis, herbal contract manufacturing, low-cap healthcare stocks, EduInvesting


āœļø Written by Prashant | šŸ“… July 1, 2025

Prashant Marathe

https://eduinvesting.in

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