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1. At a Glance

Leo Dryfruits & Spices Trading Ltd (listed Jan 2025) is the kind of SME that thinks it can sell peri-peri cashews to cops and garam masala to sailors — and somehow make it a billion-rupee story. From Maharashtra-centric spice trading (99.5% of revenue) to a fresh ₹325–330 Cr order from Kendriya Police Kalyan Bhandar (KPKB), Leo is trying to level up faster than an IPL debutant. At CMP ₹77, market cap ~₹138 Cr, the stock is priced like “medium roasted almonds,” but the question is — can they digest such a big order with debtor days of 303?

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2. Introduction

Founded in 2019, Leo Dryfruits is practically a pandemic baby. While the world was hoarding sanitizers, Leo was hoarding cashews. The business is split between trading (79%) and manufacturing/processing (21%) — making them less like ITC and more like your friendly kirana on steroids.

Their brands:

• VANDU → spices & dry fruits (bulk + retail).
• FRYD → frozen & semi-fried snacks (0.16% revenue; basically a hobby).

The growth numbers look dazzling: sales shot from ₹5 Cr in FY22 to ₹87 Cr in FY25 (155% CAGR). PAT grew 10x+ in three years. But it’s not all pista and pista shells: working capital days ballooned to 257, debtor days 303. Translation → your money is stuck in receivables longer than a Rajya Sabha bill.

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3. Business Model (WTF Do They Even Do?)

Leo’s business runs on 3 tracks:

1. B2B (77%) → Bulk sales of spices, dry fruits, and groceries to wholesalers.
2. B2C (17%) → Distributors, e-commerce (Amazon, Flipkart), police/navy canteens, CSD stores.
3. D2C (6%) → Own website, direct orders.

Revenue breakup FY24:

• Whole Spices: 89% (basically a spice trader at heart).
• Dry Fruits: 9%.
• Blended spices/snacks: negligible.
• Frozen products: rounding error.

So despite fancy branding, 9 out of 10 rupees are still good old bulk spices.

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4. Financials Overview

Quarterly Snapshot (₹ Cr)

Metric	Latest Qtr (Mar’25)	YoY Qtr (Mar’24)	QoQ (Sep’24)	YoY %	QoQ %
Revenue	69.4	62.2	76.1	11.6%	-8.8%
EBITDA	11.3	11.1	6.1	1.8%	84.9%
PAT	6.67	6.64	2.13	0.5%	213%
EPS (₹)	3.73 (annualised 15)	5.08	3.50	-27%	6.6%

At CMP ₹77 → P/E ~17x, cheaper than FMCG peers (21x). Margins ~17% OPM are solid.

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5. Valuation – Fair Value RANGE

1. P/E Method
   • EPS FY25 = ₹4.6
   • Apply 15–20x multiple → FV ₹70 – ₹92.
2. EV/EBITDA
   • EV = ₹159 Cr; EBITDA = ₹14.8 Cr → 10.7x.
   • Industry avg ~12–15x. → FV ₹85 – ₹115.
3. DCF Quick
   • Assume 25% CAGR, terminal 4%, discount 12%.
   • FV ≈ ₹80 – ₹120.

👉 Overall FV Range = ₹70 – ₹115 (educational only).

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6. What’s Cooking – News, Triggers, Drama

• Big Order (Aug’25) → Secured ₹325–330 Cr order from KPKB for 40 products. That’s ~4x FY25 sales. Execution is the real exam.
• IPO (Jan’25) → Raised ₹25 Cr for branding, working capital,