🧐 At a Glance
Chemkart India, a B2B supplier of health and nutrition ingredients, is raising ₹80 Cr via SME IPO. With 55% revenue growth, 67% PAT growth, and a 20x FY25 EPS valuation, it wants to become the Zerodha of B2B whey. But is it health or hype?
1. 🪝 Introduction with Hook
Your gym bro’s protein shake might have passed through Chemkart’s warehouse. No kidding.
Chemkart India Ltd is a health & food ingredient distributor that’s turned amino acids, whey, herbal extracts and sports nutrition into a ₹300 Cr market cap IPO. But don’t be fooled by the healthy exterior — the valuation has supplements too.
With EBITDA margin at 16%, PAT up 67%, and post-issue P/E at 12.4x, it’s asking for your money… not your BMI.
2. 🧳 Business Model (WTF Do They Even Do?)
Chemkart is like the D-Mart of nutrition ingredients — but for B2B clients:
🧃 Sells raw materials used in health supplements:
- Amino acids
- Proteins
- Herbal extracts
- Vitamins
- Sports nutrition inputs
🏭 Also offers grinding, blending, packaging in-house at a 28,000+ sq. ft. warehouse in Bhiwandi
🎯 Their clients are brands & manufacturers who package the final tablets, powders, or wellness magic you see in stores
It’s a distribution-first, inventory-light, and customer-friendly business — not a flashy D2C wellness startup.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
📈 FY23 → FY24 → FY25 (₹ in Cr)
| Metric | FY23 | FY24 | FY25 | YoY Growth FY25 |
|---|---|---|---|---|
| Revenue | 131.69 | 132.83 | 205.46 | +55% |
| EBITDA | 11.05 | 20.91 | 32.76 | +57% |
| PAT | 7.66 | 14.52 | 24.26 | +67% |
| Net Worth | 14.50 | 29.01 | 53.29 | +83% |
| ROE | – | – | 45.52% | 🚀 |
| EBITDA Margin | – | – | 16.12% | Clean |
🧠 This isn’t just growth — it’s margin expansion and balance sheet compounding. Chemkart is scaling without breaking a sweat.
4. 🧮 Valuation – Is It Cheap, Meh, or Crack?
IPO Price Band: ₹236–₹248
Post Issue Market Cap: ₹300 Cr
Post EPS FY25: ₹20.05
Post P/E: 12.37x
P/B: 8.12x
🎯 Fair Value Range (based on 15–18x FY25 EPS):
| Base FV (15x) | ₹300 |
| Stretch FV (18x) | ₹360 |
So Chemkart IPO at ₹248 is somewhere in the fair zone — not cheap, but not ultra-crack either.
5. 🍿 What’s Cooking – News, Triggers, Drama
- 🔥 Anchor Investors already put ₹22.6 Cr (July 4) — a bullish sign
- 💰 IPO is ~81% fresh issue, balance OFS (promoters partly cashing out)
- 🏭 ₹34.68 Cr of IPO funds will go to a new manufacturing facility via subsidiary
- 🧾 ₹20 Cr toward debt repayment – cleaner books ahead
- 🤝 40 employees only, lean structure
🎯 They want to graduate from a warehouse-distributor to manufacturing-led margin expansion story
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Assets | ₹86.12 Cr |
| Net Worth | ₹53.29 Cr |
| Debt | ₹17.03 Cr |
| D/E Ratio | 0.32 |
| Reserves | ₹43.79 Cr |
🟢 Good net worth base
🟢 Healthy reserves
🟡 Moderate debt – but being paid off
7. 💸 Cash Flow – Sab Number Game Hai
No detailed CFS in RHP preview, but signals say:
- PAT: ₹24.26 Cr → OCF should be strong
- Capex: Coming ahead via WOS
- Borrowings: Downtrend likely after ₹20 Cr repayment
⚙️ Business is asset-light for now, but may start capex cycle post-IPO
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROE | 45.52% | 🚀 Rocket |
| ROCE | 39–41% est | Strong |
| EBITDA Margin | 16.12% | Healthy |
| PAT Margin | ~11.8% | Good |
| Debt/Equity | 0.32x | Controlled |
| P/E | 12.37x | Fair |
📈 Financially fit like the products it sells.
9. 📈 P&L Breakdown – Show Me the Money
- FY23 PAT: ₹7.66 Cr
- FY25 PAT: ₹24.26 Cr
💰 That’s 3.17x growth in 2 years
And unlike many IPOs, this is post-tax profit, not adjusted fantasy EBITDA.
10. ⚔️ Peer Comparison – Who Else in the Game?
| Company | Revenue | ROE (%) | P/E | Notes |
|---|---|---|---|---|
| Chemkart (IPO) | ₹205 Cr | 45.5% | 12.4x | SME listing |
| Anupam Rasayan | ₹1,800 Cr | ~10% | 50x | Specialty chem |
| Neogen Chemicals | ₹600 Cr | 14–16% | 60x | Niche specialty |
| Chemplast Sanmar | ₹4,000 Cr | ~13% | 15–18x | Bulk chemicals |
➡️ Chemkart isn’t comparable on size, but on growth + ROE, it punches above SME weight.
11. 👨👩👧👦 Miscellaneous – Shareholding, Promoters
| Promoter Name | Status |
|---|---|
| Ankit Mehta | Promoter |
| Parul Mehta | Promoter |
| Shaileesh Mehta | Promoter |
📌 Promoter holding pre-IPO: 100%
📌 Post IPO: Estimate ~78–80%
Anchor lock-in till:
- Aug 9 (50%)
- Oct 8 (remaining)
Registrar: Bigshare
Market Maker: Alacrity Securities
12. 🎤 EduInvesting Verdict™
“Whey protein meets ROE protein.” 💪
✅ 67% PAT growth
✅ ROE of 45%
✅ Reasonable P/E
✅ Scalable model and new capex angle
⚠️ SME risks + promoter partial OFS
⚠️ Needs execution of subsidiary capex
🎯 EduFair Value Range: ₹300 – ₹360
Based on 15–18x FY25 EPS of ₹20.05
TL;DR: Not just selling vitamins — they’re selling a fast-growing business. But it needs to deliver post-IPO on the manufacturing vision. No red flags… yet.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Chemkart India IPO, SME IPO July 2025, Health Ingredients Distributor IPO, Chemkart Valuation, Protein Stock IPO, EduInvesting IPO Review
