Dindigul Farm Product | EnNutrica IPO (SME) Overview

Dindigul Farm Product Limited specializes in the processing of whole milk and skimmed milk to produce a range of dairy ingredients. Dindigul Farm Product | EnNutrica IPO is set to raise Rs 34.83 crores. The issue is entirely a fresh issue of 64.5 lakh shares.

IPO opensJune 20, 2024
IPO ClosesJune 24 2024
IPO Size (Rs.) ₹34.83 Cr
IPO Size (shares)6,450,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹51 to ₹54 per share
Minimum Lot2000 Shares
Listing AtBSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerBeeline
Market maker Spread X Securities.

About Dindigul Farm Product Limited:

  • Established in 2010, they are primarily engaged in processing of whole milk and skimmed milk to make dairy ingredients including, milk protein concentrates, skimmed milk powder, dairy whitener, whey protein concentrate, milk whey powder, casein, unbranded cream and butter and fat filled powders for infant milk formula.
  • The processing facility is situated at Dindigul, Tamilnadu and is spread over 15 acres.
  • Their procurement operations consist of an average procurement of approximately 50,000 litres of milk directly and around 30,000-1,00,000 litres of whole milk from open market or third party suppliers.
  • As on the date of the RHP, they have built a network of more than 150 village collection centers, with direct access to more than 4,000 farmers and more than 50 dairy farms.
  • They market products under the brand name ENNUTRICA, Activday.
  • Promoters are R Rajasekaran, Rajadharshini Rajasekaran and Indrayani Biotech Limited.

Financials: Dindigul Farm Product Limited

Particulars/  Rs. Lacs9m Dec 20232022-232021-222020-21
Revenue from Operations6874.758157.742831.881763.13
Restated Profit after tax588.4525.79-420.08-461.19
Equity Share Capital1753.41438.21438.21438.2
Net worth (total Equity)393.94-1638.46-2162.72-1742.64
Earnings per share4.093.59-2.9-3.21
NAV per equity share2.29-11.39-15.04-12.12
Total borrowings2263.872398.372579.252716.23
Post issue Share Capital2443   
IPO price54.0   
EPS Fy232.2   
PE Fy2325.1   
EPS Fy243.2   
PE Fy24 16.8   
Market cap in Lacs13,192   
Market cap / Sales1.92   

Anchors: Dindigul Farm Product | EnNutrica IPO

Dindigul Farm Product | EnNutrica IPO: Salient Points

  • Use of net proceeds
ParticularsEstimated amount   (₹ in lakhs)
Funding Capital Expenditure1,212.33
Working Capital Requirements1,384.00
  • They procure whole milk either directly from the farmers and through third party suppliers. The skimmed milk is procured by us from third party suppliers, majorly from their Group Company A R Dairy Food Private Limited.
  • Unser brand name ENNUTRICA, Activday they supply to a wide number of customers from different industries. For fiscal 2023, they have sold products in more than 15 states domestically and 3 countries internationally
  • They aim to expand international operations by  looking to enter more ASEAN and European countries.
  • They mainly supply products to Dairy Industry, Food Ingredients industry, nutrition industry, dairy industry, ice cream industry and baking industry.
  • Peers:
Particulars (₹ in Lakhs)Dindigul Farm ProductsDodla Dairy Parag Milk FoodsModern Dairies
Revenue Growth (%)188.07%23.26%40.86%
Gross Profit2,155.8858,185.7054,605.005,298.27
Gross Profit Margin (%)26.43%22.52%19.14%8.68%
EBITDA (₹ in Lakhs)927.2814,982.6013,895.50-1,260.76
EBITDA Margin (%)11.37%5.80%4.87%-2.07%
PAT Margin (%)6.33%3.68%2.40%-5.69%
Net Fixed Asset Turnover (Times)6.578.7217.8335.64
Operating Cash Flow630.313,986.60-17,944.40669.42
  • The company has a presence in over 15 states within India and exports to 3 countries internationally.
  • Promoter has experience in the field and is General Secretary of Tamil Nadu Dairies Association,
  • Corporate Promoter Indrayani Biotech Limited, a listed entity, acquired Equity Shares of our Company on June 30, 2022.
  • From FY21 to FY23, Revenue has Increased from Rs.17 Crores to Rs.81 Crores, PAT has Increased from loss to 5 Crores in FY23.
  • Dindigul Farm Product | EnNutrica IPO is coming at a PE ratio of 25x (FY23 Earnings) and 16.8x (fy24earnings annualized).
  • I would have applied in Dindigul Farm Product | EnNutrica IPO but Iam short of funds. The company has performed well, is in the right sector and has backing of listed company Indrayani Biotech.
  • GMP as reported on social media has been 68 (125%)
  • Beeline Capital Advisors Pvt Ltd is the Lead Manager to the issue. It has a fair to good record. Past issues handled by them include United Cotfab Limited, Beacon Trusteeship Limited, Rulka Electricals Limited, Piotex Industries, Winsol Engineers, Emmforce Autotech Limited, Greenhitech Ventures Limited, TAC Infosec Limited IPO, KP Green Engineering Limited, Pratham EPC Projects, V R Infraspace, Rudra Gas Enterprise Limited, Fonebox Retail Limited, Konstelec Engineers, Australian Premium Solar, Indifra Limited, Benchmark Computer Solutions, Sheetal Universal Limited, Rajgor Castor Derivatives, Arvind and Company Shipping Agencies, Karnika Industries Limited, Hi-Green Carbon Limited, Kody Technolab Limited, Chavda Infra Limited, Vinsys IT Services Limited,Ahasolar Technologies, Pentagon Rubber, Remus Pharmaceuticals, Sotac Pharmaceuticals, RBM Infracon Limited, Transvoy Logistics, Dev Labtech, Viviana Power Tech, Vital Chemtech, Aristo Bio-Tech and Lifescience, Viaz Tyres, Vertexplus Technologies etc.
  • SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
  • This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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