Sat Kartar Shopping Limited is an Ayurveda healthcare company focused on delivering natural wellness solutions for therapeutic and lifestyle products, promoting a healthier lifestyle. Sat Kartar Shopping IPO looks to raise Rs 33.80 crores. The issue is entirely a fresh issue of 41.73 lakh shares.

About: Sat Kartar Shopping Limited

• Sat Kartar Shopping Limited (SKSL) is an Ayurveda healthcare company focused on providing natural wellness solutions through both therapeutic and general lifestyle products. It operates as a Direct-to-Consumer (D2C) business, selling directly to customers via its websites and third-party platforms.
• It was incorporated as a private limited company in 2012, later becoming a public limited company in 2021. The company integrates traditional Ayurvedic knowledge with modern research to promote healthier lifestyles.
• SKSL offers a diverse product portfolio in specific therapeutic areas and general lifestyle categories.
• The portfolio comprises over 50 SKUs categorized into:
• a) Specific Therapeutic Areas:
  • Addiction Killer
  • Liv Muztang Capsules
  • Kaama Gold Capsules
• b) Lifestyle-Led Curative Areas:
  • Products for diabetes, joint pain relief, and piles (like Ayush 82 Aadved, Ortho Veda Oil, Dr. Piles Free)
• Products are sold directly to customers through the company’s own websites, as well as on third-party e-commerce sites. The company utilizes digital marketing strategies, including Google and Meta applications, and also engages in TV marketing.
• As of November 30, 2024, it had overall 1122 employees on its payroll.
• The company’s promoters include Mr. Manprit Singh Chadha, Mr. Pranav Singh Chadha, Ms. Simrati Kaur, and M/S Ajooni Wellness Private Limited.

Financials: Sat Kartar Shopping Limited

Anchors

Sat Kartar Shopping IPO: Salient Points

• The global Ayurvedic Products market size was USD 5172.7 million in 2022 and market is projected to touch USD 16018.42 million by 2032, exhibiting a CAGR of 12% during the forecast period.
• India Ayurvedic Products Market has valued at USD7.65 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 18.4% through 2029. The India Ayurvedic Products Market is a thriving and dynamic sector deeply rooted in the country’s ancient tradition of Ayurveda, which emphasizes natural remedies, holistic well-being, and the balance of mind, body, and spirit.
• Follows Direct-to-Consumer (D2C) Model selling Ayurveda products directly to consumer through our own D2C website and third-party e-commerce websites, TV marketing and Google and Meta Applications.
• Products are manufactured on contract in 4 manufacturing plants under its brand and plants make the product exclusively for the company.
• Use of Net proceeds:

• The company discontinued its spiritual segment in August 2023.
• Does not take any exports.
• Customer base is widely spread due to D2C model.
• Product Bifurcation
  • Specific Therapy: 70.90%
  • Lifestyle-Led Curative Areas: 29.10%
• All products are certified by AYUSH MINISTRY
• Peers:

• Consumers are increasingly seeking natural and holistic alternatives to conventional medicine, which is driving the demand for Ayurvedic products.
• Marketing and advertising expenses constitute approximately 50% of the company’s total expenditure. For the financial year ending March 31, 2024, 45.63% of the total expenditure was on advertisement.
• The company has focused its efforts on digital marketing and advertising, which includes social media, Google and television marketing.
• The company is diversifying its product portfolio to include products related to various health issues such as slimming, hair care, gut health, PCOD (Poly Cystic Ovary Disease), and mental wellness.
• The company operates and ensures availability of its products all over India even in remote areas.
• PE FY25 (annualized) 15x ; PE Fy24: 20x
• I intend to apply in Sat Kartar Shopping IPO. Valuations look OK compared to peers. Growth has been good. Margins are bit lower but so is the valuation being demanded. Natural and holistic alternatives to conventional medicine are gaining ground.
• GMP as reported on social media is around Rs. 33 (41%)
• Lead Manager Shreni Shares Limited. is market maker as well and has fair record in both of these segments.
• 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.