š§ At a Glance
Walpar Nutrition is a small-cap contract manufacturer of nutraceuticals and herbal supplements. FY25 revenue hit ā¹72 Cr with a 51% profit CAGR, and ROE improved to 15%. But it’s still a ā¹48 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. šæ Introduction ā Herbal Life, But Make It SME?
Youāve 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 brandsābut outsourced to low-key contract manufacturers like Walpar Nutrition?
This ā¹47 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. š§Ŗ WTF Do They Even Do?
š¦ Core Biz: Contract manufacturing for herbal, nutraceutical & ayurvedic products
They make:
- Capsules
- Powders
- Syrups
- Sachets
- Gummies
š Client Model:
- Private label manufacturing
- Some proprietary products
- Online + offline distribution, but limited branding
š R&D-driven? Maybe.
š B2B focused? Definitely.
š Brand moat? Not yet.
3. š Financials ā Solid Growth, But Thin Layers
Metric | FY23 | FY24 | FY25 |
---|---|---|---|
Revenue (ā¹ Cr) | 35.1 | 62.5 | 71.8 |
Net Profit (ā¹ Cr) | 0.81 | 1.94 | 2.79 |
OPM (%) | 9.93% | 7.60% | 7.97% |
ROE (%) | 11.2%* | 15.1% | |
ROCE (%) | 8.8% | 12.7% | 16.1% |
š§ 3-Year Revenue CAGR = 39%
š§ 3-Year PAT CAGR = 84%
But ā margins dropped post-FY23, and FY25 net profit rose only ~45% YoY.
4. šø Valuation ā Cheap Supplement or Overhyped Capsule?
CMP = ā¹50.8
š§Ŗ MCap = ā¹47.8 Cr
š P/E = 20.6x
š P/BV = 2.88x (Book Value: ā¹17.6)
š§ Fair Value Range = ā¹38āā¹46
Assuming sustainable PAT ā¹2.8ā3 Cr and 15ā17x P/E multiple (due to size, risk, and unbranded model)
Right now, itās priced like a niche D2C health brandānot a backend CDMO.
5. š„ Whatās Cooking ā News, Buzz & Balance Sheet Herbs
š§¾ Latest Buzz:
- FY25 audit report: ā āUnmodifiedā
- Clarification sought by NSE (June 2025)
- Net cash flow barely ā¹1 Cr, even after ā¹2.79 Cr PAT
Nothing scandalous. But also nothing that screams re-rating trigger.
6. š§¾ Balance Sheet ā Light Assets, Heavy Questions
FY | Equity | Reserves | Debt | Total Assets |
---|---|---|---|---|
FY23 | ā¹4.54 Cr | ā¹7.2 Cr | ā¹10.3 Cr | ā¹34.3 Cr |
FY25 | ā¹9.4 Cr | ā¹7.2 Cr | ā¹7.85 Cr | ā¹47.4 Cr |
š Key Points:
- Equity doubled (likely fundraising)
- Reserves stayed flat ā profits not retained?
- Assets up ā¹13 Cr in 2 years
- Fixed Assets = ā¹10.7 Cr ā capex-driven scale-up
But CFO over FY25 = just ā¹4 Cr.
Doesnāt match ā¹5.7 Cr operating profit. Whereās the rest?
7. šµ Cash Flow ā Better, But Not Bulletproof
Year | CFO (ā¹ Cr) | CFI (ā¹ Cr) | CFF (ā¹ Cr) | Net Cash |
---|---|---|---|---|
FY23 | +ā¹1.1 Cr | -ā¹3.4 Cr | +ā¹2.4 Cr | +ā¹0.07 Cr |
FY24 | +ā¹5.35 Cr | -ā¹3.6 Cr | -ā¹1.77 Cr | -ā¹0.03 Cr |
FY25 | +ā¹4.06 Cr | -ā¹2.3 Cr | -ā¹0.68 Cr | +ā¹1.08 Cr |
š Itās improving, but not free cash flow positive after growth capex.
š„ Bonus concern: Screener flags possible interest capitalization (masking real costs?)
8. š Ratios ā Healthy Margins, Low Pulse on Moat
Metric | FY25 |
---|---|
ROE | 15.1% |
ROCE | 16.1% |
OPM | 7.97% |
Debtor Days | 108 |
Inventory Days | 68 |
Payable Days | 108 |
Cash Conv. Cycle | 67 |
Working Cap Days | 64.1 |
š Working capital improving
ā
Cycle under 3 months now
ā ļø But debtor days still on the higher end for CDMO
9. š P&L Breakdown ā Not Bad, Not Breakthrough
FY25 Summary:
- Sales: ā¹71.76 Cr
- EBITDA: ā¹5.72 Cr
- Net Profit: ā¹2.79 Cr
- EPS: ā¹2.47
- Dividend: None
Margins are mid-range. No high-end pricing power, no deep cost efficiency.
10. āļø Peer Comparison ā Pharma Big Boys vs Herbal Halwa
Company | P/E | ROE % | Sales (Cr) | PAT (Cr) |
---|---|---|---|---|
Sun Pharma | 34.8 | 16.9 | 52,578 | 2,389 |
Cipla | 23.5 | 17.8 | 27,547 | 1,214 |
Zydus | 21.3 | 21.3 | 23,241 | 1,255 |
Walpar Nutrition | 20.6 | 15.1 | 72 | 2.79 |
š Walpar trades at similar P/E to giants ā but offers:
- No R&D moat
- No brand
- No global regulatory approvals
- Just CDMO + herbal
11. š„ Shareholding ā Who Believes in the Ayurveda?
Date | Promoter Holding |
---|---|
Sep 2021 | 71.0% |
Mar 2025 | 68.5% |
āļø Stable promoter holding
ā No institutional holding
š Public float = ~31% retail
No exit drama. But also no smart money entering yet.
12. š§ EduInvesting Verdictā¢
Walpar is a rare SME with:
ā
Profit growth
ā
Decent ROE/ROCE
ā
Clean books
ā
Improving cash flow
Butā¦
ā Thin margins
ā No consumer brand
ā High valuation for a backend CDMO
ā Still dependent on private label clients
Verdictā¢:
āLooks healthy, but maybe thatās just the packaging. Ayurvedic supplement outside, SME valuation risk inside.ā
If it pivots to branded nutraceuticals, the game changes.
Right now, itās solidābut not swoon-worthy.
š·ļø Tags:
Walpar Nutrition, nutraceutical stocks India, SME CDMO, ayurvedic SME analysis, herbal contract manufacturing, low-cap healthcare stocks, EduInvesting
āļø Written by Prashant | š July 1, 2025