IPO closes on 24 Sep'25
Ganesh Consumer Products Ltd
Minimum Investment
₹ 14,812 / 46 shares
Our Verdict:
Avoid
- Ganesh Consumer Products Ltd (GCPL) has shown steady revenue and PAT growth over the past three years. While its recent financials and return ratios have shown significant improvement, the company’s future performance hinges on successfully scaling new product lines and sustaining growth in its core portfolio. Additionally, maintaining margins amidst strong competition from more diversified players with superior value propositions remains a challenge.
- Of the total issue size of approximately Rs 409 crore, Rs 130 crore is a fresh issue. The company plans to utilize Rs 60 crore for debt repayment, with the remaining funds allocated for expansion.
- In terms of valuation, the IPO is priced at a Price-to-Earnings (PE) multiple of 33x based on FY25 earnings, which is in line with the industry average. However, we believe that long-term investors may find better opportunities in more established players at the current valuation.
- GCPL’s high product concentration, relatively small scale of operations and lack of geographical diversification raise concerns despite its strong fundamentals and ongoing expansion efforts. Given these factors, we recommend long-term investors stay on the sidelines for now.
About the company
Founded in
9 Mar'00
Managing director
Manish Mimani
- GCPL is a leading brand in the packaged kitchen staples market in the eastern states of India. With a legacy spanning 80 years, it has transformed from a family-owned flour mill into a professionally managed FMCG company, offering a diverse range of 42 products across 232 SKUs.
- GCPL operates 7 manufacturing units located in West Bengal, Uttar Pradesh and Telangana. As of March 31, 2025, it serves its general trade channel through a network of over 28 C&F agents, 9 super stockists and 972 distributors, reaching more than 70,000 retail outlets.
STRENGTHS
- Strong Market Positioning: GCPL is a dominant player in the wheat-based and gram-based derivatives market in East India, holding ~12.6% of the regional market share. It ranks among the top two players in packaged gram-based flour products, with a ~43.4% share in sattu and ~4.9% in besan within East India.
- Solid Growth: GCPL has delivered strong performance from FY23 to FY25, recording a CAGR of 18% in operating revenue, 14% in EBITDA and 14% in net profit.
- Healthy Return Metrics: With a Return on Equity (ROE) of 15.81% and Return on Capital Employed (RoCE) of 19.81%, GCPL demonstrates both strong shareholder value creation and efficient capital deployment.
- Superior Profit Margins: GCPL boasts a gross profit margin of 22.23%, EBITDA margin of 8.61% and a PAT margin of 4.17%, which are all well above those of listed peers.
RISK FACTORS
- Geographic Concentration: GCPL's sales are heavily reliant on West Bengal, with 84.27% of its revenue coming from the region in FY25. This concentration exposes the business to potential risks from adverse developments in the area.
- Intense Competition: The kitchen staples market is highly competitive and fragmented, with both large national players and small unorganised competitors. GCPL faces strong competition from major pan-India FMCG brands such as ITC (Aashirvaad), Tata Consumer (Sampann), Patanjali Foods and Adani Wilmar (Fortune) in the packaged staples segment. This intense competition could lead to pricing pressure, potentially impacting the firm’s ability to maintain margins.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 408.80 crore
Fresh Issue
₹ 130 crore
OFS
₹ 278.80 crore
Price range
₹ 306 - 322
Lot size
46 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Prepayment or repayment of certain outstanding borrowings availed by the Company;
- Setting up a roasted gram flour and gram flour manufacturing unit in Darjeeling, West Bengal; and
- General corporate purposes.
Dates
Bidding open
22 Sep'25
Bidding close
24 Sep'25
Allotment date
25 Sep'25
Refund date
26 Sep'25
Listing
29 Sep'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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