At a Glance
Chemkart India Ltd, a B2B distributor of amino acids, vitamins, and sports supplements, is launching a ₹80.08 Cr IPO — a mix of ₹64.48 Cr fresh issue and ₹15.60 Cr OFS. With 67% PAT growth and 59% ROE, the numbers look shredded like a gym bro on creatine. But is the ₹248/share price tag worth it — or are we just overpaying for glorified packaging of L-leucine?
1. 🎯 Introduction with Hook
The IPO market has gone from steel, sugar, and software… to whey protein and plant extracts. 💪🌿
Enter Chemkart India, a Mumbai-based B2B distributor of health ingredients — from amino acids to herbal extracts to vitamins — now going public with a ₹300 Cr ambition.
They’re not manufacturing yet, but they’re already flexing margins, anchoring ₹22 Cr, and hoping to mix whey with wealth.
Let’s lift the lid on the protein jar and see what’s really inside.
2. 🧪 Business Model – WTF Do They Even Do?
Short version: Chemkart is like the Amazon for raw health ingredients – but strictly B2B.
They don’t own brands, they don’t make pills, and they don’t sell to consumers.
What they do:
- Import + distribute amino acids, herbal extracts, vitamins, protein powders, and sports supplements
- Provide grinding, blending, labeling, and packaging services at their Bhiwandi unit
- Serve nutraceutical manufacturers, supplement startups, and pharma companies
Basically: Your favorite gym brand’s raw material came through Chemkart.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
Let’s be real. These numbers are beast mode for an SME IPO.
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 131.7 | 132.8 | 205.5 (+55%) |
| EBITDA | 11.1 | 20.9 | 32.8 |
| PAT | 7.66 | 14.5 | 24.3 (+67%) |
| Net Worth | 14.5 | 29.0 | 53.3 |
| Total Debt | 11.3 | 12.5 | 17.0 |
🧠 Ratios:
- ROE = 59%
- ROCE = 49%
- PAT Margin = 11.8%
- EBITDA Margin = 16.1%
These are not SaaS margins, but for a trading-and-processing business? Solid AF.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
At the upper band (₹248/share), here’s what we get:
- Market Cap = ₹300.06 Cr
- Post-IPO EPS = ₹20.05
- P/E = 12.37x
- Price/Book = 8.12x 😳
Compared to peers and growth? Not overpriced, but also not a hidden gem.
🧮 EduInvesting Fair Value Range:
If we value them at 10–12x FY25 EPS, that’s ₹200 – ₹240/share
So, at ₹248? We’re at upper edge of comfort zone.
5. 🔥 What’s Cooking – News, Triggers, Drama
- 🏭 ₹34.68 Cr for new manufacturing facility (through wholly-owned subsidiary Easy Raw Materials)
- 💸 ₹20 Cr towards debt repayment
- 📦 Capex includes expanding packaging and processing ops, vertical integration
- 🔐 ₹22.60 Cr raised from anchor investors
Oh, and 100% pre-IPO promoter holding is getting diluted — no shady exits.
6. 💣 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Net Worth | ₹53.29 Cr |
| Debt | ₹17.03 Cr |
| D/E Ratio | 0.32 |
They’re healthy, profitable, and moderately leveraged.
Post-IPO, balance sheet will get cleaner, debt will drop, and net worth shoots up.
No red flags here. Maybe just too many protein tubs on the balance sheet.
7. 💵 Cash Flow – Sab Number Game Hai
- Positive operating cash flows, thanks to solid PAT and growing scale
- Some stress on working capital due to rising inventory/SKD material
- Capex and loan repayment will clean up outflows in FY26
Don’t expect free cash flow fireworks — but decent hygiene overall.
8. 📐 Ratios – Sexy or Stressy?
| KPI | Value |
|---|---|
| ROE | 59% |
| ROCE | 49% |
| D/E | 0.32x |
| PAT Margin | 11.8% |
| EBITDA Margin | 16.1% |
| P/E (Post-IPO) | 12.37x |
💡 One of the best ratio profiles among SME IPOs in 2025 so far.
9. 🧾 P&L Breakdown – Show Me the Money
Revenue comes from:
- Sale of raw health ingredients (major chunk)
- Processing, blending, packaging for B2B clients
- Minor value-add through inventory management, labeling
Costs?
- Product sourcing (bulk import or local manufacturers)
- Labor + warehouse
- Compliance, branding, and logistics
Margins are better than you’d expect for a distributor — because of value-added handling + niche vertical (sports/health).
10. 🤼 Peer Comparison – Who Else in the Game?
| Company | Revenue | PAT | ROE | P/E |
|---|---|---|---|---|
| Chemkart | ₹205 Cr | ₹24 Cr | 59% | 12.4x |
| Nutribio (hypothetical SME) | ₹90 Cr | ₹6 Cr | 24% | 15x |
| Fitspire (unlisted) | ₹110 Cr | ₹7 Cr | 18% | – |
Chemkart is bigger, faster, and more profitable than most listed nutraceutical SMEs. But again, it’s a trader, not a proprietary brand.
11. 🧩 Miscellaneous – Shareholding, Promoters
Promoters:
- Mr. Ankit Mehta
- Ms. Parul Mehta
- Mr. Shailesh Mehta
- Pre-IPO holding: 100%
- Post-IPO: Will drop, but still in control
- No investor exits, no PE vultures, no complex structures
👍 Clean cap table. Straight family-run biz.
12. 🧑⚖️ EduInvesting Verdict™
Chemkart’s IPO has the three things SME investors dream of:
✅ High-growth sector (nutrition/health)
✅ Clean financials + rising profits
✅ Reasonable valuation (<13x P/E)
But here’s the flip side:
- It’s a B2B trader, not a D2C brand
- Valuation is fully priced, not cheap
- Highly competitive and fragmented industry
Still, among SME IPOs, this is one of the more professional and better-executed plays.
If they pull off the new plant, they could move from supplier to manufacturer — and that’s when margin expansion gets real.
Tags: Chemkart IPO, protein powder IPO, sports nutrition stocks, SME IPO July 2025, health ingredients business, nutraceutical IPO India
✍️ Written by Prashant | 📅 July 7, 2025
