by Prashant Marathe | EduInvesting.in | 22 May 2025
🍛 At a Glance:
Madhusudan Masala Ltd, the IPO darling of the SME segment, just served up itsFY25 thali— and on the surface, it’s looking delicious:
- Profit: ₹15 Cr
- EPS: ₹10.93
- Revenue: ₹232 Cr
- CMP: ₹190 (+12% today)
BUT… the balance sheet isspicier than expected. 👀
- ₹660 Cr in short-term borrowings?
- ₹98 Cr ofmasalas lying in inventory?
- ₹3.2 lakh in cash 😬
Let’s taste-test these results with our signatureEduInvesting masala blend— humour, hard numbers, and hawk-eyed audit notes.
🏢 About the Company
Madhusudan Masala Ltd is in the business of manufacturing, processing, and packaging a variety ofspices and blended masalas.Think: turmeric, coriander, cumin, chole masala, and now… potentiallyfinancial red flags.
They acquiredVitagreen Products Pvt Ltdin July 2024 — possibly to diversify, possibly to make the balance sheet more complex (mission accomplished).
🙇♂️ Key Managerial Personnel (KMP)
- MD: Ramesh Bhai Masaledaar (name changed for flavour)
- Auditor: Sarvesh Gohil & Associates
- —issued unmodified opinion, but the debt pile begs deeper inspection.
📊 Financial Highlights – FY25
| Particulars | Amount (₹ Cr) |
|---|---|
| 🔸 Revenue from Operations | 231.0 |
| 🔸 Other Income | 1.38 |
| 🔸 Total Income | 232.36 |
| 🔸 Total Expenses | 215.38 |
| 🔸 Net Profit | 15.02 |
| 🔸 Basic EPS | ₹10.93 |
YoY Growth?
- You can’t really compare — FY24 numbers are either unavailable or standalone.
- But the second half alone gave ₹8.49 Cr profit, which is a40% jump over H1.
So performance-wise?Chutney solid.Now comes the big spoon of reality.
📉 Forward-Looking Fair Value (FV)
Assumptions:
- SME peers like Chaman Lal Setia, Everest trade at 25–28x
- We apply a conservativeP/E of 18x(because… see debt, below)
🧮 FV = ₹10.93 × 18 =₹197📍 CMP = ₹190🔼 Upside =~4% leftif all goes well — andnothing breakson the balance sheet.
🧮 Balance Sheet – Let’s Act Like an Auditor
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