As an investor, it can be very challenging to decide whether the NFP Sampoorna Foods IPO is a good or bad investment. Not anymore, as in this blog, we will provide you with all the necessary details related to the NFP Sampoorna Foods IPO to help you decide whether you should Apply or Not. Read on to know the IPO risks, strengths, valuation, financial details, and expert opinion to make your investment decision better.
NFP Samporna Foods IPO ReviewĀ
| Reviewer | Recommendation |
| IPO Watch | Neutral |
| Beacon Capital Advisors Pvt. Ltd. (Equivision) | May Apply |
StrengthsĀ
- Its promoters have over 28 years of experience in food processing, logistics, coal trading, and building materials.
- The company sources its raw materials directly from various regions and authorized suppliers, instead of relying on 3rd party. The Cashew is sourced from Africa, Makhana is sourced from Bihar, and Almonds are directly purchased from licensed importers in Delhi NCR markets.
- The brandās products consistently stay in demand due to the long shelf life of dry fruits, which can be stored for a long time and do not get affected by seasonal fluctuations, allowing them to supply the products in any season.
- The firm has built a long-lasting client relationship by continuously offering high-quality dry fruits while meeting the requirements of each client.Ā
Weaknesses
- The companyās operations is depend on its processing facility. Any slowdown, shutdown, or disruption in the facility can negatively affect the business, financial condition, and operations.
- Around 97% of the companyās revenue comes from the sales of Cashew and Cashew products. Any negative things that happen in the cashew market, supply, or government regulations can negatively impact the business, financial performance, and cash flow.
- NFP Sampoorna Foods is operating in a highly competitive segment. Due to this, they have to spend extra on marketing, promotions, and discounts, which will tighten the budget and reduce the profits.
- The firm depends on the top 10 suppliers for the purchase and sourcing of raw materials. If any of these suppliers stop supplying or end the relationship with the company can adversely affect the business and financial operations.Ā
Promoters holding, if any
- Praveen Goel, age 52 years, is the Chairman and Non-Executive Director of the company. He holds 43,73,513 Equity shares, representing 53.50% of pre-issue Equity capital.Ā Ā Ā
- Anju Goel, age 49 years, is the Whole Time Director of the company. She holds 100 Equity shares.
- Yashvardhan Goel, age 26 years, is the Managing Director of the company. He holds 35,63,310 Equity shares, representing 43.59% of pre-issue Equity capital.Ā Ā
Peer comparisonĀ
| Company | EPS | PE Ratio | RoNW % | NAV (ā¹) | Income (ā¹) |
| NFP Sampoorna Foods Limited | 4.31 | 12.76x | 29.65% | 14.54 | ā¹3,563.67 lakhs |
| Krishival Food Limited | 6.07 | 37.89x | 9.99% | 60.74 | ā¹17,323.30 lakhs. |
| Prospect Consumer Products Limited | 4.19 | 17.21x | 9.46% | 42.54 | ā¹3,099.11 lakhs |
Industry P/E
The industryās P/E ratio ranges from a low of 17.21 to a high of 37.89, with an average P/E ratio of 27.55.
Fund Expansion
- From the IPO money, ā¹7.25 crores would be used for funding the working capital requirements of the Company.Ā
- ā¹9.50 crores would be used for the Prepayment or repayment of a portion of certain outstanding borrowings availed by the Company.Ā
- The rest of the money would be used for the general Corporate Purpose.Ā
Conclusion- May Apply for Medium to Long TermĀ
A company that takes care of everything, from sourcing, processing, grading, packaging, marketing, and distribution of dry fruits, is coming with its IPO open on the 18th of May. SPF Samporna Foods is one of the trusted food processing company that do trading of dry fruits, including cashew nuts (raw and processed), makhana (fox nuts), almonds, and walnuts.
NFP Sampoorna Food IPO may be considered by investors looking for medium- to long-term investment opportunities, supported by the growing demand in the food sector and the companyās business potential.
If we look into financial statements, profit is also consistently growing, and ROE & ROCE are also satisfactory. This firmās business uses advanced roasting and packaging technologies to keep the freshness and nutrition of the products intact. When it comes to investment, one should always do deep research and take the advisorās advice before making an investment decision. As of May 15, the NFP Samporna Foods GMP is ā¹0.Ā
Please Note:Ā
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the companyās RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
