Shivchem Agro
A distinct read of SME-specific danger (liquidity, concentration, forensic flags) — separate from the FinMinutes Score. Higher band = more caution warranted.
- Capital advances of Rs. 2.38 crore paid to promoters for personal property acquisitions prior to the IPO.
- Outstanding Income Tax demand of Rs. 0.68 crore under Section 143(1) for AY 2025-26.
- Persistent statutory compliance delays across EPF (up to 134 days), GST (up to 61 days), and Labour Welfare Fund (up to 851 days).
- Pre-IPO 14:1 bonus allotment and promoter loan conversion establishing an insider WACA of Rs. 6.63 per share.
- Cumulative operating cash flow across FY24-FY26 remains negative (-Rs. 5.55 crore) due to heavy working capital lock-up in inventories (Rs. 20.56 crore).
Educational risk signal grounded in the filing — not a buy/sell call.
First time with SME IPOs? Read the SME IPO guide and the risks before applying.
FinMinutes Deep Business Model & Edge
Shivchem Agro Limited is an agrochemical company engaged in the manufacturing and distribution of technical pesticides, agrochemicals, insecticides, fungicides, herbicides, weedicides, fertilizers, plant growth regulators, and micronutrients.
What this company actually does — full breakdown ▾
Incorporated in 2021 and headquartered in Rohini, New Delhi, Shivchem Agro Limited is an ISO 9001:2015, ISO 22000:2018, and ISO 31000:2018 certified manufacturer and distributor of agrochemical products. The company manufactures a wide range of crop protection products including insecticides, fungicides, herbicides, weedicides, plant growth regulators, and micronutrient fertilizers. As of FY26, Shivchem Agro distributes its products across 6 states in India through an established network of 685 active distributors. Operating revenue grew from Rs. 10.9425 crore in FY24 to Rs. 27.4650 crore in FY25 and Rs. 33.8159 crore in FY26. In FY26, raw material purchases/consumption totaled Rs. 15.4335 crore (excluding GST), while top 10 customers accounted for 28.71% of revenue (Rs. 9.7094 crore) and top 10 suppliers accounted for 71.29% of purchases (Rs. 14.6831 crore). The manufacturing operations rely on raw material procurement, formulation, quality control, packaging, and distribution through regional godowns.
Diversified crop protection product portfolio (258 licensed/manufactured products), expanding pan-India distribution network covering 685 active distributors across 6 states, and ISO-certified manufacturing and quality assurance processes.
The Offer
Follow the Money — Use of Proceeds
- Funding the working capital requirements of our Company — ₹6.90 cr
- Repayment/prepayment, in full or part, of certain loans availed by our Company — ₹3.50 cr
- General Corporate Purpose
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 3 live components.
80% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity, Valuation Vs Peers. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured12%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured32%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 33.8159 | 27.465 | 10.9425 |
| Net Profit (₹ Cr) | 3.2486 | 2.6015 | 1.2935 |
| PAT Margin | 9.61% | 9.47% | 11.82% |
Market Context
NOT part of the FinMinutes ScoreThe Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.
Our read of the filing is solid, but demand is thin so far. Books fill late — most retail and institutional bids land in the final hours — so this may simply be the clock. Or the market may know something the filing does not say.
Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Revenue from Operations (FY26 vs FY25) | ↑ 23.1% | Revenue grew due to expansion of distributor network to 685 active distributors across 6 states and increased sales volume of agrochemical formulations. | Structural |
| Cost of Materials Consumed (FY26 vs FY25) | ↓ 23.4% | Raw material procurement cost decreased due to utilization of opening raw material inventories and favorable domestic sourcing prices. | Structural |
| Employee Benefits Expense (FY26 vs FY25) | ↑ 18.4% | Employee benefit expenses increased due to expansion of sales and marketing personnel to 39 employees and statutory wage adjustments. | Structural |
| Finance Costs (FY26 vs FY25) | ↑ 86.1% | Finance costs increased due to higher working capital borrowing utilization and machinery term loan interest obligations. | Structural |
| Other Expenses (FY26 vs FY25) | ↑ 14.3% | Other expenses rose due to higher travelling charges, freight and forwarding expenses, and godown lease rentals across operating states. | Structural |
| Profit After Tax (FY26 vs FY25) | ↑ 24.9% | Net profit expanded due to higher operating volume, improved gross margins from lower material costs, and stable operational overheads. | Structural |
| Trade Receivables (FY26 vs FY25) | ↑ 52.4% | Trade receivables expanded due to revenue growth and extending credit terms to regional distributors during peak agricultural seasons. | Structural |
| Inventories (FY26 vs FY25) | ↑ 10.3% | Inventories increased due to higher finished goods and raw material stocking to support 685 active distributors across godowns. | Structural |
| Operating Cash Flow (FY26 vs FY25) | ↑ 159.8% | Operating cash flow turned positive at Rs. 1.7925 crore in FY26 (from -Rs. 2.9985 crore in FY25) due to higher operating profit and improved inventory turnover. | Structural |
| Revenue from Operations (FY25 vs FY24) | ↑ 151.0% | Revenue expanded substantially due to expanding active distribution network across Andhra Pradesh, Telangana, Odisha, and Assam, alongside adding 26 new licensed products. | Structural |
Headwinds
- Vulnerability to erratic monsoon weather patterns and climate change sector persistent
India's agriculture is vulnerable to unpredictable rainfall, droughts, and floods that directly alter pest dynamics and reduce farmer demand for pesticides and fertilizers. - Heavy geographic revenue concentration in Andhra Pradesh and Telangana company persistent
Deriving significant revenue from southern agricultural belts exposes sales performance to regional weather variations, pest incidence, and state agricultural policies. - Lack of long-term supply agreements for key technical raw materials company persistent
Sourcing core technical ingredients (Solvent C9, Chlorpyriphos, Paraquat, Pretilachlor, Glyphosate) from spot market vendors exposes manufacturing margins to raw material price volatility.
Tailwinds
- Government GST 2.0 rate reduction on fertilizer inputs and bio-pesticides macro
GST council reduced tax rates on critical agrochemical inputs (sulphuric acid, nitric acid, ammonia) and bio-pesticides from 18% to 5% in September 2025, lowering farmer input costs. - Expanding pan-India distributor network and backward integration capabilities company
Growing active distribution base to 685 distributors across 6 states alongside automated packaging machinery enhances market penetration and operational turnaround.
| Facility | Period | Utilisation |
|---|---|---|
| Jhajjar Manufacturing Unit, Haryana - Insecticides (3,000,000 kg/ltr installed) | FY26 | 25.5% |
| Jhajjar Manufacturing Unit, Haryana - Fungicides (250,000 kg/ltr installed) | FY26 | 42.8% |
| Jhajjar Manufacturing Unit, Haryana - Herbicides (850,000 kg/ltr installed) | FY26 | 57.4% |
| Jhajjar Manufacturing Unit, Haryana - Plant Growth Regulators (1,500,000 kg/ltr installed) | FY26 | 7.0% |
| Jhajjar Manufacturing Unit, Haryana - Fertilizers (900,000 kg/ltr installed) | FY26 | 6.2% |
Movements the filing does not explain
- Pre-IPO Capital Advances Paid to Promoters for Property Acquisitions FY26 — Capital advances of Rs. 2.3798 crore were paid to promoters Rohit Agarwal (Rs. 1.0242 crore) and Sachin Agarwal (Rs. 1.3556 crore) for property acquisitions as of March 31, 2026. While the advance to Rohit Agarwal was refunded after March 2026, the MD&A narrative does not detail the strategic operational rationale for advancing corporate cash to promoters for private real estate transactions prior to the IPO.
A material movement that management does not address is not a finding on its own. It is a question the filing leaves open, and it is recorded here as one.
Issue Timeline
Dates as carried by the exchange feed. Allotment, refund and credit dates move more often than the open and close dates do.
- Refunds initiated2026-10-05
- Pre Application Start2026-09-25
- Bidding Start2026-09-28
- Bidding End2026-09-30
- Allotment Process Start2026-10-01
- Allotment Finalization2026-10-05
- Listing Day2026-10-06
- Mandate End2026-11-11
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 33.82 | 27.47 | 10.94 |
| Other Income | 0.02 | 0.04 | 0.01 |
| Total Income | 33.84 | 27.50 | 10.95 |
| Cost of Materials Consumed | 15.43 | 20.15 | 11.00 |
| Changes in Inventories | 3.23 | -4.91 | -5.36 |
| Employee Benefit Expense | 3.92 | 3.31 | 1.66 |
| Finance Cost | 1.34 | 0.72 | 0.16 |
| Depreciation & Amortisation | 0.26 | 0.12 | 0.05 |
| Other Expenses | 5.25 | 4.59 | 1.71 |
| Total Expenses | 29.44 | 23.98 | 9.22 |
| Profit Before Exceptional Items and Tax | 4.40 | 3.52 | 1.73 |
| Profit Before Tax | 4.40 | 3.52 | 1.73 |
| Tax Expense | 1.15 | 0.92 | 0.43 |
| Profit After Tax | 3.25 | 2.60 | 1.29 |
| EPS - Basic | 6.16 | 11.96 | 8.62 |
| EPS - Diluted | 6.16 | 11.96 | 8.62 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 2.64 | 2.64 | 0.05 |
| Reserves & Surplus | 10.28 | 7.04 | 1.45 |
| Net Worth | 12.92 | 9.67 | 1.50 |
| Long-term Borrowings | 2.80 | 2.74 | 1.80 |
| Short-term Borrowings | 4.48 | 5.52 | 5.30 |
| Total Borrowings | 7.28 | 8.26 | 7.10 |
| Trade Payables | 19.87 | 15.83 | 6.24 |
| Current Liabilities | 29.19 | 23.80 | 13.08 |
| Total Liabilities | 45.04 | 36.29 | 16.41 |
| Property, Plant & Equipment | 3.69 | 4.38 | 1.55 |
| Capital Work in Progress | 0.00 | 0.00 | 0.75 |
| Intangible Assets | 0.06 | 0.07 | 0.06 |
| Investments | 0.00 | 0.00 | 0.00 |
| Inventories | 20.56 | 18.64 | 9.39 |
| Trade Receivables | 16.94 | 11.12 | 4.27 |
| Cash & Equivalents | 0.13 | 0.24 | 0.07 |
| Current Assets | 41.35 | 31.91 | 14.87 |
| Total Assets | 45.04 | 36.29 | 16.41 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | 1.79 | -3.00 | -4.34 |
| Capital Expenditure | 0.42 | -2.95 | -1.32 |
| Net Cash from Investing Activities | 0.42 | -2.91 | -1.32 |
| Net Cash from Financing Activities | -2.33 | 6.08 | 5.72 |
| Net Change in Cash | -0.11 | 0.17 | 0.06 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profitability | |||
| EBITDA Margin (%) | 17.7 | 15.9 | 17.7 |
| EBIT Margin (%) | 17 | 15.4 | 17.3 |
| PAT Margin (%) | 9.6 | 9.5 | 11.8 |
| Return on Equity (%) | 25.1 | 26.9 | 86.2 |
| Return on Capital Employed (%) | 28.4 | 23.7 | 22 |
| Return on Assets (%) | 7.2 | 7.2 | 7.9 |
| Leverage | |||
| Debt / Equity (x) | 0.56 | 0.85 | 4.73 |
| Net Debt / EBITDA (x) | 1.19 | 1.84 | 3.63 |
| Interest Coverage (x) | 4.29 | 5.9 | 11.69 |
| Liquidity | |||
| Current Ratio (x) | 1.42 | 1.34 | 1.14 |
| Quick Ratio (x) | 0.71 | 0.56 | 0.42 |
| Efficiency | |||
| Asset Turnover (x) | 0.75 | 0.76 | 0.67 |
| Receivable Days | 183 | 148 | 143 |
| Inventory Days | 222 | 248 | 313 |
| Payable Days | 214 | 210 | 208 |
| Cash Conversion Cycle (days) | 191 | 186 | 248 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | 0.55 | -1.15 | -3.36 |
| Accruals Ratio (%) | 3.2 | 15.4 | 34.3 |
| Capex / Depreciation (x) | 1.59 | 24.66 | 27.74 |
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Margin (PAT / Revenue) | 9.6% | 9.5% | 11.8% |
| Asset Turnover (Revenue / Assets) | 0.75x | 0.76x | 0.67x |
| Equity Multiplier (Assets / Net Worth) | 3.49x | 3.75x | 10.93x |
| = Return on Equity | 25.1% | 26.9% | 86.2% |
| Tax Burden (PAT / PBT) | 0.74x | 0.74x | 0.75x |
| Interest Burden (PBT / EBIT) | 0.77x | 0.83x | 0.91x |
| Operating Margin (EBIT / Revenue) | 17% | 15.4% | 17.3% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- Receivable days rose from 143 in FY24 to 183 in FY26. The company is booking revenue faster than it is collecting it, which ties up cash and raises the question of who is not paying.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
7 of 8 inputsAn eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 1.237 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | 0.49 | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | — | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.231 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 0.398 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 0.942 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 0.971 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.0323 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
The filing does not disclose every input the model needs, so we withhold the composite score rather than substitute a guess. The components we could compute are above.
Altman Z″-Score (emerging markets)
Z″ = 6.92 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.27 |
| X2 — Retained Earnings / Total Assets | 0.228 |
| X3 — EBIT / Total Assets | 0.127 |
| X4 — Net Worth / Total Liabilities | 0.287 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 6.92 |
Piotroski F-Score (adapted)
6 / 8Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.
- ✓Positive return on assets
- ✓Positive operating cash flow
- ✓Return on assets improving
- ✗Cash flow exceeds profit (quality of earnings)
- ✓Long-term leverage decreasing
- ✓Current ratio improving
- ✓Gross margin improving
- ✗Asset turnover improving
Ratios Nobody Prints
- Contingent liabilities / Net worth: 0%
Contingent liabilities of 0.00 cr against a net worth of 12.92 cr — 0% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 0%
0% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Cash / Short-term borrowings: 0.03x
Short-term borrowings of 4.48 cr against cash of 0.13 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 9.9%
Managerial remuneration to the promoter group was 0.32 cr against a profit of 3.25 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth3.25 ÷ 12.92What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)5.74 ÷ (12.92 + 7.28) = 5.74 ÷ 20.20Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue6.00 ÷ 33.82Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth7.28 ÷ 12.92How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost5.74 ÷ 1.34How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(16.94 ÷ 33.82) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days222 + 183 − 214How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT1.79 ÷ 3.25Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(3.25 − 1.79) ÷ 45.04 = 1.46 ÷ 45.04The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Price × Post-issue Shares₹62.00 × 7,532,800 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash46.70 + 7.28 − 0.13What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.
Enterprise Value ÷ EBITDA53.85 ÷ 6.00The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.
Market Cap ÷ PAT46.70 ÷ 3.25The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ EPS, on pre- and post-issue share counts₹6.16 EPS pre → ₹4.31 EPS postThe fresh issue expands the share count by 30%, so the same profit is spread across more shares. The multiple quoted in the filing is struck on pre-issue earnings; the one on the right is what a buyer actually holds on listing day. The gap closes only if the new capital earns a return, which has not happened yet.
Offer price ÷ weighted average cost of acquisition₹62.00 ÷ ₹6.63Every offer document must disclose the weighted average cost of acquisition for shares issued or transferred over the preceding one, eighteen and thirty-six months. Early capital takes real risk and a large multiple built over years is ordinary. A steep step-up inside a short window is the one that deserves a second look. What it means is yours to decide; the arithmetic is the filing’s own.
EBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)NOPAT ÷ Invested CapitalWhat the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.
P/E ÷ trailing PAT growth (%)14.38 ÷ 24.9%PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.
Workspace
The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.
Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.
Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.
Institutional Alpha: DRHP Deep Dive
Pre-IPO Capital Advances Paid to Promoters for Real Estate Transactions
As at March 31, 2026, the company had outstanding capital advances paid to promoters totaling Rs. 2.3798 crore (Rohit Agarwal Rs. 1.0242 crore and Sachin Agarwal Rs. 1.3556 crore) under agreements to sell for real estate properties. The advance to Rohit Agarwal was refunded after March 2026, while the transaction with Sachin Agarwal remains incomplete.
Source: p.38, 279Inordinate Statutory Payment Delays and Outstanding Tax Demand of Rs. 0.68 Crore
The company disclosed recurring administrative delays in depositing EPF (up to 134 days delay), ESIC (up to 15 days), GST (up to 61 days delay across 31 instances in FY26), and Labour Welfare Fund (up to 851 days delay). Furthermore, Income Tax authorities issued an assessment demand of Rs. 0.6805 crore for AY 2025-26 under Section 143(1).
Source: p.51, 246High Working Capital Intensity with 383 Inventory Days Across Regional Godowns
Operating cash flow turned positive at Rs. 1.7925 crore in FY26 after cumulative cash outflows of -Rs. 7.3419 crore across FY24-FY25. Working capital remains heavily locked up in inventories (Rs. 20.5647 crore, 383 inventory days) and trade receivables (Rs. 16.9356 crore, 151 days) to service 685 distributors across 6 states.
Source: p.71, 121, 349Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Sachin Agarwal
Litigation: Criminal complaints under Section 138 NI Act filed by Company totaling Rs. 0.1565 crore against trade debtors. SARFAESI proceedings before DRT-I Kolkata challenging Axis Bank SARFAESI notice involving Rs. 0.7091 crore filed by promoter group entity M/s Rohit Oil Industries, Radhey Shyam Agarwal, and Rohit Agarwal.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| Super Crop Safe Limited | 27.83 | — | 6.69 | — |
| Sikko Industries Limited | 15.21 | — | 5.92 | — |
At the ₹62 upper band, the issue is priced at 10.1x earnings — a 53% discount to the peer median of 21.5x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.
Indian Agrochemicals & Fertilizer Production and Consumption Metrics
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Indian Pesticide Production (000 tonnes) | 280 | FY 2023-24 technical grade pesticide production in India |
| Indian Fertilizer Production (Lakh tonnes) | 497 | FY 2023-24 fertilizer production in India |
| Indian Agrochemical Exports (USD billion) | 4.19 | FY 2023-24 total agrochemical exports from India |
Source: p.164, 180
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
As at March 31, 2026, the company had outstanding capital advances paid to promoters totaling Rs. 2.3798 crore (Rohit Agarwal Rs. 1.0242 crore and Sachin Agarwal Rs. 1.3556 crore) under agreements to sell for real estate properties. Subsequently, the proposed purchase from Rohit Agarwal was cancelled and refunded between April 1 and September 15, 2026, while the purchase from Sachin Agarwal remains incomplete.
p.222, 223, 279, 316The company disclosed recurring administrative delays in depositing EPF (up to 134 days delay), ESIC (up to 15 days), GST (up to 61 days delay across 31 instances in FY26), and Labour Welfare Fund (up to 851 days delay). Furthermore, Income Tax authorities issued an assessment demand of Rs. 0.6805 crore for AY 2025-26 under Section 143(1).
p.51, 246In September 2024, the company issued 700,000 bonus shares (14:1 ratio) at Rs. 0.00 per share, and in October 2024 converted promoter loans into 1,600,000 shares at Rs. 19.16 per share (pre-split). Following a 2:1 stock split in November 2024, promoters Rohit Agarwal and Sachin Agarwal hold 4,699,900 shares at an average cost of acquisition (WACA) of Rs. 6.63 per share.
p. 33, 34, 68, 99 and 1 moreOperating cash flow turned positive in FY26 at +Rs. 1.7925 crore after being deeply negative in FY25 (-Rs. 2.9985 crore) and FY24 (-Rs. 4.3434 crore) due to working capital lock-up in inventories (Rs. 20.5647 crore, 383 inventory days) and trade receivables (Rs. 16.9356 crore, 151 days).
p.71, 121, 349The peer comparison set includes mainboard-listed Super Crop Safe Limited (P/E 27.83x) alongside SME-listed Sikko Industries Limited (P/E 15.21x), yielding an industry average P/E of 21.52x.
p.68, 73Criminal complaints under Section 138 NI Act filed by Company totaling Rs. 0.1565 crore against trade debtors. SARFAESI proceedings before DRT-I Kolkata challenging Axis Bank SARFAESI notice involving Rs. 0.7091 crore filed by promoter group entity M/s Rohit Oil Industries, Radhey Shyam Agarwal, and Rohit Agarwal.
p. 2, 40, 47, 90 and 4 moreShort-term borrowings of ₹4.48 cr against cash of ₹0.13 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.
rule: cash < 0.5x short-term debtCompany's Claims vs Reality
We stress-test each claim against the filing's own data.
Working capital requirements are verified by inventory days reaching 383 days in FY26 (Rs. 20.56 crore) and trade receivables standing at Rs. 16.94 crore (151 days), confirming high operational capital intensity.
p.71, 111, 112Total debt stood at Rs. 7.28 crore as at March 31, 2026 (Debt/Equity 0.56x). Repaying Rs. 3.50 crore of high-cost loans (interest rates ranging between 10.45% and 34.00%) directly lowers finance costs (Rs. 1.34 crore in FY26).
p.73, 111, 119, 120The agreement with Rohit Agarwal was cancelled and Rs. 1.0242 crore refunded after March 2026, while the purchase from Sachin Agarwal (Rs. 1.3556 crore advance) remains incomplete, demonstrating pre-IPO related-party capital lock-up.
p.222, 223, 279Live Subscription Status
Allotment Status
Check your allotment on the registrar's portal → Registrar: Maashitla Securities
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (11 Nov 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
How are the fresh issue IPO proceeds allocated across working capital requirements, debt repayment, and general corporate purposes?
Fresh issue proceeds are allocated as: Rs. 6.9000 crore for funding incremental working capital requirements, Rs. 3.5000 crore for repayment or prepayment of outstanding loans, and the balance for General Corporate Purposes (capped at 15% of issue size or Rs. 10.00 crore, whichever is lower).
p.111, 112, 119What is the promoters' pre-issue shareholding, acquisition history, and cost of acquisition?
Promoters Rohit Agarwal, Sachin Agarwal, and Deepa Agarwal hold 90.14% pre-issue equity (4,752,920 shares out of 5,272,873 pre-issue shares). Pre-issue shareholding was expanded via a 14:1 bonus issue (700,000 shares) in September 2024 and conversion of director loans (1,600,000 shares at Rs. 19.16/share) in October 2024, establishing a promoter Weighted Average Cost of Acquisition (WACA) of Rs. 6.63 per share (post 2:1 stock split).
p.33, 34, 40, 68, 99, 103What are the key related-party transactions, capital advances, and promoter debt support?
Capital advances totaling Rs. 2.3798 crore were paid to promoters Rohit Agarwal (Rs. 1.0242 cr, subsequently refunded) and Sachin Agarwal (Rs. 1.3556 cr) for property acquisitions. Promoters provided personal guarantees and pledged 4.19 acres of personal land in Jhajjar, Haryana to secure Union Bank of India credit facilities. Unsecured loans from directors/relatives stood at Rs. 0.0059 crore as of March 31, 2026.
p.222, 223, 241, 244, 258, 279How did operating cash flow perform relative to restated net profits over FY24 to FY26?
Restated PAT expanded from Rs. 1.2935 crore in FY24 to Rs. 2.6015 crore in FY25 and Rs. 3.2486 crore in FY26. Operating Cash Flow (CFO) was negative in FY24 (-Rs. 4.3434 crore) and FY25 (-Rs. 2.9985 crore) before turning positive in FY26 (+Rs. 1.7925 crore), resulting in a cumulative 3-year cash flow drain of -Rs. 5.5494 crore due to working capital lock-up in inventories (Rs. 20.5647 crore) and trade receivables (Rs. 16.9356 crore).
p.23, 79, 121, 349What secretarial, statutory compliance, litigation, and tax findings exist for the company?
The company disclosed an Income Tax demand of Rs. 0.6805 crore for AY 2025-26 under Section 143(1) and recurring administrative delays in filing/depositing EPF, ESIC, GST, and Labour Welfare Fund dues. Penalties under Section 454 of Companies Act 2013 were paid for delayed filing of Form INC-20A. Statutory auditor M/s VMSM & Co., Chartered Accountants, served continuously without auditor change.
p.51, 155, 227, 246What are the application lot terms, retail ticket requirements, market maker details, and exit constraints for public investors?
The offer is listed on BSE SME with a minimum retail application requirement of 2 lots (minimum application size above Rs. 2 lakhs). Trading occurs strictly in standardized market lots, and because lots are indivisible, partial exit or fractional lot trading is impossible. Nikunj Stock Brokers Limited is the Market Maker with 114,000 reserved shares (5.04%) and a mandatory 3-year obligation period. Standard SME 5% price circuit limits apply.
p.2, 75, 95, 137, 139, 140, 150What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Rohit Agarwal & Sachin Agarwal | ₹10.00 | 2021-09-12 | 6.2x |
| An early round from roughly 5 years ago, at roughly 6.2x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders (Promoters) | — | 2024-09-27 | — |
| Rohit Agarwal & Sachin Agarwal (Promoters) | ₹19.16 | 2024-10-07 | 3.2x |
| Existing Shareholders (Split 2:1) | — | 2024-11-21 | — |
| Pre-IPO Allottees | ₹44.00 | 2025-02-02 | 1.4x |
| Allotted below the band — 1 entries | |||
| AWA Endeavor LLP | ₹87.00 | 2024-10-22 | as disclosed |
The 1 allotments listed under “allotted below the band” are shown at their as-disclosed per-share price. They are not adjusted for any later bonus issue or share split, so where a company has issued bonus shares the raw multiple understates the true return and can even read as a loss when none was made. We show them as filed and decline to compute a misleading multiple.
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 06 Oct 2029promoter3 years1,510,000 shares (20.04% of total)
- 06 Oct 2027promoter1 year3,242,920 shares (43.05% of total)
- 06 Oct 2027promoter group and public1 year519,953 shares (6.9% of total)
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.
