At a Glance
Greenchef Appliances Ltd, the maker of mixers, pressure cookers, and now “digital cooktops”, debuted on NSE SME with a pop… and now sizzles at ₹60. But does this kitchen brand deliver hot financials, or is it just low-flame gas?
🔪 1. TL;DR — Is This SME a Hidden Multibagger?
- FY25 Profit = ₹6 Cr, up 20% YoY
- FY25 Sales = ₹373 Cr (up 16%)
- 🪓 OPM stuck at 4% for 2 years straight
- CMP ₹60 = P/E of ~23x, P/B ~1.16x
- 5-Year PAT CAGR = 39%, but Sales CAGR only 9%
- ROE? Just 5.1% in FY25
- ❌ No dividend. No moat. No kicker.
- 🧾 Promoters hold 73.5% — solid control
- 📉 Stock has fallen -16% in 1 year post IPO
🍲 2. What Does Greenchef Actually Do?
Greenchef is your classic Tier-2 kitchen appliance maker:
🔹 ISO 9001:2008 certified
🔹 Offers over 150 SKUs across 25 categories
🔹 Major products:
- Pressure cookers
- Gas stoves
- Mixers & juicers
- Cooktops
- Induction stoves
- Recently launched: Tri-ply steel utensils (June 2025)
It’s like a mini Prestige meets Pigeon… but without the brand swagger.
📦 3. Financial Recap – From Cooker Whistle to Investor Fizzle
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 239 | 329 | 320 | 321 | 373 |
| EBITDA (₹ Cr) | 10 | 8 | 20 | 12 | 15 |
| OPM (%) | 4% | 2% | 6% | 4% | 4% |
| Net Profit (₹ Cr) | 3 | 1 | 10 | 5 | 6 |
| EPS (₹) | 8.59 | 1.43 | 6.13 | 2.08 | 2.56 |
| ROE (%) | 8% | 3% | 13% | 5% | 5% |
😬 Flat sales. Low margin. ROE below 7%.
The numbers are more banal than butter chicken.
📉 4. Quarterly Update — Margins on Simmer Mode
| Quarter | Revenue (₹ Cr) | OPM % | Net Profit (₹ Cr) |
|---|---|---|---|
| Sep ’23 | 150 | 6% | 4 |
| Mar ’24 | 180 | 2% | 1 |
| Sep ’24 | 170 | 5% | 5 |
| Mar ’25 | 202 | 3% | 1 |
🔍 PAT bounced around, but no consistency
💸 OPM crashing from 6% → 2% → 3%
This kitchen’s leaking oil.
🛒 5. Valuation Check – Is This Still Cookable?
- CMP = ₹60
- EPS (FY25) = ₹2.56
- P/E = ~23.5x
- Book Value = ₹51.8 → P/B = 1.16x
- ROE = 5.1%
- Market Cap = ₹140 Cr
📌 This valuation is kitchen madness:
- Low margin appliance business
- No brand premium
- Barely 6 Cr annual profit
You’re paying ₹23 for ₹1 of low-quality profit. Why?
⚠️ 6. Risks on the Menu
- 🔥 No moat – Competes with Prestige, Bajaj, Butterfly, V-Guard
- ⚡ Low margins and high working capital
- 🧾 Inventory Days = 144, and Debtor Days = 98
- 🧮 Cash Conversion Cycle = 99 days = efficiency is stuck
- 🧯 Zero dividend, despite consistent profit
- 📉 SME stocks often lack liquidity and circuit freeze risk
🧠 7. What’s Going For It?
- 🧾 Promoter Holding 73.5% = skin in the game
- ✅ Debt reduced from ₹121 Cr in FY24 to ₹85 Cr in FY25
- 💸 Positive cash flow from ops in FY25 = ₹34 Cr
- 🔄 New products like tri-ply and induction stoves = good intent
But intent ≠ execution.
📈 8. Fair Value (FV) Range – The Real Recipe
Method 1: P/E Method
- EPS: ₹2.56
- Assign P/E = 12–15x for this scale & margin profile
→ FV = ₹30 – ₹38
Method 2: EV/EBITDA
- EBITDA: ₹15 Cr
- Reasonable EV/EBITDA = 7x
- Enterprise Value = ₹105 Cr
- Net debt = ₹40 Cr → Implied market cap = ₹65 Cr
→ FV = ₹28 per share
🎯 EduInvesting FV Range: ₹28 – ₹38
CMP ₹60 = 🛑 Overcooked
🔚 Final Verdict: Kitchen Closed?
Greenchef has all the ingredients, but the recipe isn’t working.
It’s profitable, but barely.
It’s launching products, but they aren’t scaling.
The brand isn’t aspirational. The margins are stubborn. And the valuation is a stretch.
Right now, this isn’t a multibagger. It’s a mild-bagger with tepid upside and SME volatility.
✍️ Written by Prashant | 📅 June 21, 2025
Tags: Greenchef Appliances, SME IPO Stocks, Kitchen Appliance Stocks, Consumer Durables India, Smallcap Valuations, EduInvesting, Household Products, Appliance Sector India
