1. At a Glance
Sal seeds, mango kernels, and corporate butter — welcome to the exotic world of Manorama Industries. With a 254% TTM profit growth and an OPM smoother than actual butter (27%), this ₹9,393 crore cap smallcap has gone full jungle-book-meets-BSE. P/E? A creamy 63. Strap in.
2. Introduction with Hook
Imagine finding gold in mango pits and sal leaves. Now imagine turning that into cocoa butter, slathering on some FMCG lipstick, and selling it at a P/E of 63. That’s Manorama. This Raipur-based fats-and-butter biz has grown its profit 37% CAGR over five years, and the recent quarter saw sales leap 38% QoQ — faster than your heartbeat at a chocolate buffet.
Add to that:
- Q1 FY26 Sales: ₹290 Cr (up from ₹233 Cr QoQ)
- Q1 Net Profit: ₹51 Cr (up 21% QoQ)
Butter just got expensive — and investors can’t stop licking their lips.
3. Business Model (WTF Do They Even Do?)
Manorama’s business is what you get when Willy Wonka quits chocolate and joins ESG:
- Core Play: Processing tree-borne exotic seeds (Sal, Mango) into specialty fats and butters
- Product Portfolio: Cocoa Butter Equivalents (CBEs), specialty fats for confectionery, cosmetics, bakery, etc.
- USP: “Waste to Wealth” — basically, forest leftovers become beauty cream and candy magic.
- Clients: Global FMCG titans — the usual skincare, candy bar, and biscuit mafia.
In short: They take tree droppings, turn them into butter, and sell it like it’s Botox for chocolate.
4. Financials Overview
Let’s talk cold-pressed numbers, shall we?
| Metric | FY23 | FY24 | TTM (Jun ’25) |
|---|---|---|---|
| Revenue (₹ Cr) | 351 | 771 | 927 |
| EBITDA (₹ Cr) | 56 | 191 | 243 |
| Net Profit (₹ Cr) | 30 | 112 | 149 |
| OPM (%) | 16% | 25% | 26% |
| EPS (₹) | 5.0 | 18.8 | 25.0 |
Commentary:
Margins thicker than wedding invitations. Sales are doubling, profits tripling, and the EBITDA is skipping like it’s on sugar rush.
5. Valuation
Valuation is where reality gently slaps you.
- P/E (TTM): 63
- EV/EBITDA: ~39x (est.)
- Book Value: ₹77.5 → CMP is 20x BV
Fair Value Range: ₹1,150 – ₹1,350 (based on 35x P/E and 25x EV/EBITDA)
If you think paying 63x earnings is fine, you probably also buy popcorn at multiplex prices without blinking.
6. What’s Cooking – News, Triggers, Drama
- Global Expansion: Subsidiaries launched in Brazil, Ghana, Burkina Faso, Ivory Coast. Basically, every country with a sal tree and postal code.
- Management Reshuffle: MD out, Executive Director in — no corporate drama, but enough to keep us munching.
- Credit Ratings: Multiple upgrades — because fat margins apparently also bring good karma.
- Quarterly Banger: Sales +38% QoQ, PAT +21% QoQ — they’re selling fat faster than weight-loss apps promise to burn it.
Plot twists? More than your average OTT thriller.
7. Balance Sheet
| FY | Equity | Reserves | Borrowings | Net Worth | Total Assets |
|---|---|---|---|---|---|
| FY23 | ₹12 Cr | ₹286 Cr | ₹110 Cr | ₹298 Cr | ₹424 Cr |
| FY25 | ₹12 Cr | ₹450 Cr | ₹482 Cr | ₹462 Cr | ₹985 Cr |
Debt isn’t Titanic-level, but with ₹482 Cr in borrowings, the ship is wobbling. Fixed assets and CWIP are ramping up — read: expansion mode ON.
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net CF |
|---|---|---|---|---|
| FY23 | -33 | -99 | -7 | -47 |
| FY24 | 59 | -62 | 214 | 111 |
| FY25 | -59 | -34 | 93 | 0 |
Cash flow looks like your freelancer friend: always hustling, somehow broke. That FY25 ops CF drop is concerning — profits exist, but cash doesn’t feel the same way.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 (TTM) |
|---|---|---|---|
| ROCE | 13% | 23% | 23% |
| ROE | 10% | 28% | 28% |
| PAT Margin | 9% | 14% | 16% |
| D/E | 0.36 | 1.12 | 1.06 |
| P/E | 63 | – | 63 |
Verdict: ROE is fire. D/E rising. P/E on steroids. So yes — both sexy and stressy.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹351 Cr | ₹56 Cr | ₹30 Cr |
| FY24 | ₹771 Cr | ₹191 Cr | ₹112 Cr |
| FY25E | ₹927 Cr | ₹243 Cr | ₹149 Cr |
PAT grew 10%, but only if you squint past the ₹482 Cr debt. Revenue runway’s there — now the question is: can the cash conversion keep up?
11. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROCE |
|---|---|---|---|---|
| Manorama | 927 | 149 | 63 | 23% |
| EID Parry | 31,609 | 715 | 29 | 17% |
| Krishival Foods | 202 | 14 | 66 | 15% |
| Goyal Salt | 130 | 13 | 22 | 28% |
Looks like the least drunk guest at a wedding full of finance bros. Expensive, but charming.
12. Miscellaneous – Shareholding, Promoters
Promoter Holding:
- FY23: 57.26%
- FY25: 54.41%
Slight dip, but still holding majority stake.
FIIs: Up from 2.44% → 3.4%
DIIs: 5.14%
Public: 37.56%
Shareholders Count: Exploded from 5.3k → 24.6k in 2 years.
Everyone wants a piece of that seed-to-butter story.
13. EduInvesting Verdict™
Manorama is like that fancy artisanal soap bar — smells great, looks promising, but priced like it’s made from unicorn tears. Sales and profit growth are legit phenomenal, and the “jungle to chocolate” story is deliciously unique. But the valuation? Eye-watering.
A tasty growth story — just make sure your wallet’s on a diet.
Written by EduInvesting Team | 25 July 2025
Tags: Manorama Industries, FMCG, Cocoa Butter, EduInvesting Premium, Seed-to-Butter Model, Waste to Wealth, Q1 FY26 Results, SEBI Regulation 30, Smallcap Stocks
