Himalaya Nutravedics India SME IPO

Strengths · 8

• 01Sales have tripled in two years, from Rs 14.43 crore in FY2024 to Rs 21.00 crore in FY2025 and Rs 43.12 crore in FY2026.
• 02Profit has grown from Rs 0.43 crore in FY2024 to Rs 2.23 crore in FY2025 and Rs 7.39 crore in FY2026.
• 03The margin is high for a small manufacturer, with a PAT margin of 17.16% and an EBITDA margin of 18.82%.
• 04Return ratios are very strong, with RoNW of 45.12% and RoCE of 36.41%.
• 05Debt is low. Total borrowing was Rs 5.13 crore against a net worth of Rs 16.38 crore, a debt to equity ratio of only 0.31.
• 06The issue is priced at about 12.63 times earnings on an EPS of Rs 8.39.
• 07It can make several dosage forms in one facility, from softgels and tablets to oils, liquids and powders, which lets it serve a wider set of contract manufacturing customers.
• 08The Hyderabad facility holds WHO-GMP certification along with ISO 22000:2018 and ISO 9001:2015, which matters for both export and contract work.

Risks · 9

• 01The company is very young. It was started only in June 2022, so it has around four years of history and has not been tested through a difficult period.
• 02The growth is from a very small base. Sales tripled and profit rose about seventeen times in two years, which cannot be assumed to continue.
• 03Rs 7.50 crore of the Rs 26.5 crore issue goes into business development and digital marketing. That is a running cost rather than an asset, and it will need to be spent again.
• 04Sales depend on healthcare practitioners recommending the products. That relationship has to be maintained continuously and can be won away by competitors.
• 05The whole business runs from one facility in Hyderabad, so there is single location risk.
• 06Ayurvedic and nutraceutical products are a crowded category with low barriers to entry and many small manufacturers.
• 07The contract manufacturing part of the business earns a lower margin than selling its own brands.
• 08Promoter holding will come down from 95.14% to 68.13% after the issue.
• 09This is an SME issue. One lot is 1,200 shares, which is about Rs 1.27 lakh at the upper band of Rs 106, and SME shares usually trade in low volume after listing.

Himalaya Nutravedics India Limited was started in June 2022. It is a Hyderabad based company that formulates, manufactures and markets Ayurvedic and nutraceutical products.

Its products come in several forms, including softgel capsules, tablets, medicated oils, liquid orals, hardgel capsules and protein powders. Being able to make all of these in one place is unusual for a company of this size, because each dosage form needs its own line and approvals. Its products cover therapeutic areas such as digestive health, immunity, metabolic health and pain management.

It sells in two ways. Its own branded products are marketed through healthcare practitioners rather than through mass advertising, so doctors recommending the product is what drives sales. Alongside that it manufactures on a third party contract basis for other brands. It has expanded to 17 states and one union territory in India. Its manufacturing facility is in Hyderabad, Telangana and holds ISO 22000:2018, ISO 9001:2015 and WHO-GMP certification. As on 30 April 2026 it had 80 employees.

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