Sheetal Universal IPO (NSE SME) Overview

Sheetal Universal IPO plans to raise ₹23.80 Cr. The issue is entirely a fresh issue of 34 lakh shares. Sheetal Universal Limited is engaged in the business of sourcing, processing, and supplying agricultural commodities like peanuts, sesame seeds, spice, and grains to cater to the manufacturers of peanut butter, biscuits, cakes, chocolate, and food products.

IPO opensDec 04, 2023
IPO ClosesDec 06, 2023
IPO Size (Rs.)₹23.80 Cr
IPO Size (shares)3,400,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹70 per share
Minimum Lot2000 Shares
Listing AtNSE SME
QIB (includes anchor, Market Maker)~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerBeeline Capital Advisors
RegistrarBigshare Services
Market makerSpread X Securities

About Sheetal Universal Limited:

  • Company was originally incorporated as “Sheetal Universal Limited” in 2015.
  • Company is into sourcing, processing and supply in agriculture commodities like peanut, sesame seeds, spice and grains to cater the manufacturer of peanut butter, biscuits, cakes, chocolate and food products..
  • Have own manufacturing & processing facility situated at Taluka- Kalawad, District- Jamnagar, which is spread over a total land area of approximately 14668 sq mts.
  • Their manufacturing facility employs an extensive and stringent quality control mechanism at each stage of the process to ensure that the finished product conforms to the exact requirement of customers .
  • They are accredited with ISO 22000:2018 certification for the processing of groundnut, groundnut kernals, sesame seeds and whole & ground spices.
  • They are also the member of Agricultural & Processed Food Products Export Development Authority and Indian Oil Seeds& Produce Export Promotion Council.
  • Promoters of our Company is Mr. Hiren Vallabhbhai Patel and Mrs. Kajal Hiren Patel, has overall business experience of more than 8 years in agro processing industries.
  • Company has two subsidiaries Saumesvar International Private Limited and Svar Industries Private Limited. The subsidiaries are processor, exporter of Agri Commodities like oil seed, grains etc.

Financials: Sheetal Universal Limited

Particulars / Rs. In Lacs2023 (05) 202320222021
Revenue from operations5,675.8612,881.223,868.773,763.64
Profit After Tax187.68198.8628.3225.41
Net worth1,046.89649.22450.37422.07
Share Capital805.6350350350
EPS (Diluted (Post Bonus)2.372.560.370.33
NAV per Equity Share138.375.815.44
Total Borrowings1463.221356.24984.8625.07
Post issue Share Capital1146   
IPO price70   
EPS Fy231.7   
PE Fy2340.3   
EPS Fy24 (annualized)3.9   
PE Fy24  (annualized)17.8   
Market cap in Lacs8,022.0   
Market Cap/sales0.6   

Sheetal Universal IPO: Salient Points

  • Promoters stake shall come down from 95% to 66.81%.
  • Within short span, they were recognized as Category One Star Export House Exporter by Ministry of Commerce and Industry due to their performance in exports and later on in May 2023 company was categorised as Two Star Export House.
  • Their production unit is certified for Export of Peanuts to EU (European Union) suitable for Bird Feed and human consumption.
  • In the year 2018 they have started processing of sesame seeds and spices and added high tech machinery for cleaning, destoning, gravity separator, colour sorting. Over the years, they established a regular customer base in various countries. Company supplies products to Russian Federation, Indonesia, Malaysia, Vietnam, UAE, Iran, Algeria, Israel, Turkey, Egypt.
  • They offer “certified organic” as well as conventional Indian origin products as per client requirement.
  • Top ten customers Contributes 72.41%, 66.07%, 56.16% and 79.28% of total sales for the period ended on August 31, 2023 and year ended March 31, 2023, March 31, 2022, and 2021 respectively.
  • Company is currently engaged in the sortaging, processing and packaging of agriculture commodities like peanut, sesame seeds, spice and grains to cater the manufacturer of peanut butter, biscuits, cakes, chocolate and food products. They are further planning to expand into its existing vertical by introducing new products i.e., Protein Powder and Extract cold press oil.
  • Peanut protein powder has good foaming and emulsifying properties. Is has wide range of applications like in Dairy products, cakes, bevarages, solid bevarages, Pet foods, Plant protien products, cereal baking products, Ice cream production and others.
  • Cold press germ oil is byproduct obtained while making defatted protein powder and further filtered by using pure physical screening germ technology for human consumption. It extracts nut press oil by cold pressed at low temperature and textured protein. It has application in cold dressing, stuffing, soup, steaming noodles and other cooking, dishes.
  • Key Performance Indicators of Company:
  ParticularsFor the Period ended on
Revenue from Operations (₹ in Lakhs)5,675.8612,881.223,868.773,763.64
Growth in Revenue from Operations (%)232.95%2.79% 
Gross Profit253.82249.10107.5489.75
Gross Profit Margin (%)4.47%1.93%2.78%2.38%
EBITDA (₹ in Lakhs)181.21149.2115.984.04
EBITDA Margin (%)3.19%1.16%0.41%0.11%
Profit After Tax (₹ in Lakhs)187.68198.8628.3225.41
PAT Margin (%)3.31%1.54%0.73%0.68%
RoE (%)22.13%36.17%6.49%5.93%
RoCE (%)13.50%21.59%6.99%7.28%
  • Sheetal Universal IPO is coming at a PE ratio of 40.3x(fy23 earnings) and 17.8x (fy24 annualized earnings).
  • There has been a sharp jump in revenues and profits from FY23.
  • I intend to apply in Sheetal Universal IPO subject to release of funds from other IPOs. I consider it bit risky. Issue is aggressively priced. It is present in agro-processing industry which presently has good tailwinds.
  • GMP as reported on social media has been around Rs. 12.
  • 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 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.
  • Spread X Securities Private Limited looks to be associate of Beeline Capital and has acted as SME IPO Market Maker in recent issues that include Rajgor Castor Derivatives, Arvind and Company Shipping, Karnika Industries Limited, Hi-Green Carbon Limited, Kody Technolab Limited, Chavda Infra Limited.
  • SME IPO are much more risky and volatile than mainboard IPOs. This post is not a suggestion to apply for this IPO.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational/ exploratory 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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