1. At a Glance – Ice Cream with a Side of Leverage
Sheetal Cool Products Ltd is currently sitting at a market cap of ₹327 crore with a stock price of ₹314. In the last 3 months, the stock has delivered a spicy 49.5% return. That’s not vanilla. That’s triple-chocolate-chip-with-extra-toppings kind of move.
Latest quarterly numbers (December 2025 quarter) show revenue of ₹63.88 crore and PAT of ₹4.01 crore, up 87% YoY. Operating margin stands at 14.5%. Stock P/E is 20.9, compared to industry median of 27.2. ROCE is 15.7%, ROE 14.9%, Debt-to-equity 0.63.
Sounds sweet, right?
But wait. Debtor days have climbed. Inventory days are 250. Cash conversion cycle? A heroic 260 days. That’s almost 9 months of cash stuck in the freezer.
So here’s the question: Is this a growing regional FMCG brand in expansion mode, or is working capital quietly eating the kulfi stick from inside?
Let’s open the freezer and inspect.
2. Introduction – From Amreli to America
Founded in 1987, Sheetal Cool Products manufactures ice cream, milk products, namkeen, bakery items, frozen food, and even exports to the US and Nepal.
They operate under the brands “Sheetal” and “J’adore.”
Now, any company that sells both buttermilk and Chinese Bhel deserves attention.
They have migrated from BSE SME to the Main Board in November 2022. That’s like moving from local cricket tournament to Ranji Trophy.
Distribution network has grown to 652 distributors. Presence in Gujarat, Maharashtra, Rajasthan, MP, Kashmir, Noida. They’ve even partnered with IOCL, BPCL, HPCL, Western Railway. Ice cream at petrol pumps. Because why not?
Exports increased 210% in FY23 — though still insignificant in total revenue.
But here’s the twist. In September 2025, credit rating was downgraded to IVR B+ Negative under “Issuer Not Cooperating.”
Translation? Rating agency kept calling. Company didn’t pick up.
Interesting.
Are we looking at aggressive expansion pains? Or financial discipline concerns?
Let’s decode.
3. Business Model – WTF Do They Even Do?
They sell:
- 170+ ice cream products under Sheetal
- 73+ flavours under J’adore
- Milk, lassi, buttermilk,
