🟢 At a Glance
RPSG Ventures is the RP-Sanjiv Goenka Group’s experiment lab: part IT/BPM, part FMCG (Guiltfree), part Herbolab Ayurveda, part sports, and part random startup acquirer. FY25 revenue crossed ₹9,600 Cr, but PAT barely touched ₹164 Cr. ROE? A mere 6%. Is it a value stock in hiding… or just a confused conglomerate?
1. 🎬 Introduction with Hook
Imagine if Tata Consumer, Infosys, Patanjali, and Manchester Originals had a baby.
That’s RPSG Ventures.
It makes chips (Too Yumm!), sells herbal pills, runs IT/BPM services, owns sports teams, and buys D2C brands like it’s on a Shark Tank binge.
But with FY25 PAT at just ₹164 Cr on ₹9,600 Cr revenue, and debt at ₹6,150 Cr, the question is:
Is this business “venturing” toward value creation, or just venture-capital level chaos?
2. 🧠 Business Model – WTF Do They Even Do?
RPSG Ventures is a holding company. Think of it as a private equity fund inside a listed stock, with no exit timelines.
It owns:
💻 IT Services (Firstsource-style BPM)
- Revenue-generating arm
- Offers BPO/KPO, analytics, tech support
- High-margin, scalable
🍟 FMCG (Guiltfree Industries)
- Brands: Too Yumm!, Evita, etc.
- Mid-tier national snack brands
- ₹78 Cr tax demand + fire incident (ouch)
🌿 Ayurveda (Herbolab)
- Herbal supplements & OTC
- Acquired Spectrum Delight (2024)
- Still small, experimental
🏆 Sports (RPSG Sports Ventures)
- Stake in Manchester Originals
- Owner of Lucknow Super Giants (LSG) in IPL via parent group
🛍️ D2C Retail Bets
- Bought The Gift Studio (₹25 Cr)
- Building consumer infra organically + via M&A
You don’t buy this for one sector. You buy this hoping some bet pays off.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹7,166 Cr | ₹7,951 Cr | ₹9,608 Cr |
| PAT | -₹59 Cr | ₹197 Cr | ₹164 Cr |
| OPM | 11% | 16% | 14% |
| ROE | – | 6.7% | 6.0% |
| ROCE | 9% | 12% | 11.4% |
✅ Revenue up 34% in 2 years
❌ Profits down YoY
⚠️ Margins volatile due to FMCG & one-offs
4. 💰 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹905
- EPS FY25: ₹4.97
- P/E: 18.7x
- P/B: 1.12x
- Book Value: ₹805
- Market Cap: ₹2,999 Cr
🧠 EduTake:
- Valuation is not crazy
- Holding structure means discount is expected
- Real question: which vertical will scale sustainably?
5. 🔥 What’s Cooking – News, Triggers, Drama
🚨 FY25 Headlines:
- PAT fell from ₹197 Cr → ₹164 Cr
- ₹6,152 Cr in borrowings
- Guiltfree factory fire (Jan 2024) — insurance claim pending
- ₹78 Cr tax demand on Guiltfree
🧾 Acquisitions:
- Bought Spectrum Delight (Ayurveda)
- Acquired D2C gifting brand “The Gift Studio” for ₹25 Cr
- Plans to list FMCG arm in future
📢 Other:
- ₹308 Cr PBT in Q4FY24 — but very volatile
- Preferential allotment of 35.75L shares (Mar 2024)
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹33 Cr |
| Reserves | ₹2,630 Cr |
| Borrowings | ₹6,152 Cr 🚨 |
| Total Liabilities | ₹16,222 Cr |
| Cash & Other Assets | ₹4,337 Cr |
| Net Block | ₹11,272 Cr |
📛 D/E ratio > 2.0x
Not comfortable unless FMCG/IT starts throwing big cash.
7. 💵 Cash Flow – Sab Number Game Hai
| FY | CFO | Capex (Est.) | FCF |
|---|---|---|---|
| FY23 | ₹726 Cr | ₹719 Cr | ~₹7 Cr |
| FY24 | ₹1,038 Cr | ₹1,137 Cr | -₹99 Cr |
| FY25 | ₹1,098 Cr | ₹1,590 Cr | -₹492 Cr |
FCF-negative 2 years in a row. More acquisitions than monetisations.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 11.4% |
| ROE | 6.0% |
| Interest Coverage | 1.2x 😬 |
| OPM | 14% |
| Cash Conversion Cycle | 69 days |
| Working Capital Days | 17 |
Low ROE, low ROCE, but improving. Still far from peers like eClerx or AllDigi.
9. 🧾 P&L Breakdown – Show Me the Money
- Revenue: ₹9,608 Cr
- EBITDA: ₹1,373 Cr
- PAT: ₹164 Cr
- EPS: ₹4.97
- Dividend: Zero (again)
Management’s focus is clearly on reinvestment — which only works if those bets pay off.
10. 🥊 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | D/E |
|---|---|---|---|---|
| RPSG Ventures | 18.7x | 6% | 14% | 2.0x |
| eClerx | 30.5x | 23.7% | 24% | <0.2x |
| Firstsource | 44.2x | 15% | 15.5% | 0.3x |
| Alldigi | 20.4x | 27.9% | 23.7% | 0.5x |
RPSG’s valuation is low because the ROE is low. It’s not a bargain — just matched to its fundamentals.
11. 🧬 Miscellaneous – Shareholding, Promoters
| Stakeholder | % |
|---|---|
| Promoters | 63.51% (increased since FY23) ✅ |
| FIIs | 3.61% (falling) |
| DIIs | 1.93% |
| Public | 30.94% |
Promoter stake rising. FII stake declining. Not the best optics, but could flip if FMCG IPO comes through.
12. 🧠 EduInvesting Verdict™
RPSG Ventures is a buffet of businesses — some profitable, some “wait and watch.”
✅ Revenue growth solid
✅ Asset-light IT arm + asset-heavy FMCG
❌ Debt-heavy
❌ Cash flow negative
❌ ROE stuck at 6%
🎯 Fair Value Estimate (FV Range):
Assuming:
- FY26E EPS = ₹6.5–₹7.0
- Justified P/E = 12–15x for holding company
FV Range = ₹78 – ₹105 per share post holding company discount
But wait — current market price = ₹905?
That’s because post-demerger of Guiltfree, value unlocking is expected. But until that happens, the scrip is running on hope, not fundamentals.
✍️ Written by Prashant | 📅 July 9, 2025
Tags: RPSG Ventures, Guiltfree Industries, Too Yumm, Herbolab, RPSG Group, FMCG IPO India, Holding Company Valuation, EduInvesting, Diversified Stocks India, FY25 Results
