1. At a Glance
The spice maker with a 43-year legacy posted Q1 FY26 sales of ₹73 Cr and PAT ₹4.17 Cr. Margins are around 10%, but growth looks mild and cash flows are crying. The stock trades at P/E 16.5, giving it FMCG vibes without FMCG firepower.
2. Introduction
Think of Madhusudan Masala (MML) as your friendly neighborhood masala brand that wants to be the next Everest. Problem? They’re burning cash faster than you burn your first attempt at making biryani. IPO hype is fading, but promoters are still doubling down with preferential issues.
3. Business Model (WTF Do They Even Do?)
They grind, blend, and package 32+ spice varieties, hing, papads, pickles, even tea. Also trades whole spices unbranded (a.k.a. bulk hustle). Margins rely on brand premium—still WIP.
4. Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹73 Cr (flat QoQ)
- OPM: 10.3%
- PAT: ₹4.17 Cr (EPS ₹2.88)
- Net Debt: ₹75 Cr
Verdict: Profitable, but growth spices are missing.
5. Valuation – What’s This Stock Worth?
At P/E 16.5 and P/B 2.2, it’s cheaper than FMCG giants but expensive for a mid-tier spice trader. Fair Value sits at ₹120–₹160, close to CMP ₹145. No screaming bargains here.
6. What-If Scenarios
- If branding clicks: Margins rise, rerating possible.
- If raw material spikes: Margins vanish faster than cumin in hot oil.
- If cash flow stays negative: Debt pile becomes masala-flavored headache.
- If acquisitions integrate well: Scale-up magic.
7. What’s Cooking (SWOT)
Strengths: Legacy brand, diverse products, expanding SKUs.
Weaknesses: Weak cash flow, low ROE visibility.
Opportunities: Expansion via branding and retail reach.
Threats: Raw material volatility, big players (Everest, MDH) crushing smaller brands.
8. Balance Sheet 💰
| ₹ Cr | FY25 |
|---|---|
| Equity | 14 |
| Reserves | 79 |
| Borrowings | 75 |
| Total Liabilities | 179 |
| Fixed Assets | 15 |
Debt-heavy, asset-light, and trying to scale.
9. Cash Flow (FY25)
| ₹ Cr | FY25 |
|---|---|
| Operating | -39 |
| Investing | -7 |
| Financing | 45 |
| Net Cash | -1 |
Cash flow looks like a leaky spice jar.
10. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE (%) | ~N/A |
| OPM (%) | 10 |
| D/E | 1.1 |
| Cash Cycle | 251 days |
Working capital hogs cash; debt fills the gap.
11. P&L Breakdown
| ₹ Cr | FY25 |
|---|---|
| Revenue | 231 |
| EBITDA | 24 |
| PAT | 15 |
Steady topline, bottom line still finding flavor.
12. Peer Comparison
| Company | P/E | OPM% | ROE% | PAT Qtr Cr |
|---|---|---|---|---|
| Madhusudan Masala | 16.5 | 10.3 | – | 4.2 |
| Manorama Industries | 67.6 | 26.2 | 28 | 50.6 |
| Krishival Foods | 65.6 | 10.4 | 10.5 | 5.2 |
| Freshara Agro | 15.2 | 14.4 | 37 | 17.4 |
Peers are either high-margin FMCG or niche players with premium pricing.
13. EduInvesting Verdict™
Madhusudan Masala is a small spice brand trying to play big-league FMCG. Numbers are okay, cash flow is not. Valuation is fair but not exciting.
A steady kitchen ingredient—just don’t expect it to turn into gourmet magic overnight.
Written by EduInvesting Team | 28 July 2025
Tags: Madhusudan Masala, FMCG, Spices, Q1 FY26, EduInvesting Premium
