- Our view
- Buy
- Price at our call
- ₹ 182.60
- Target
- ₹ 420.00
- Return at close
- +154.65%
- Status
- Target achieved 14 Jul 2026 · closed 30 Sep 2026
- Market cap then
- INR 469.83 Cr.
Sacheerome Ltd. makes fragrances and flavours for business customers in food and non-food FMCG markets. Minerva Capital Research Solutions highlights revenue growth, expanding margins and a planned capacity increase, but this note does not state a recommendation or target price.
About Sacheerome
Incorporated in 1992, Sacheerome creates and manufactures fragrances and flavours for B2B customers in food and non-food FMCG markets. Its products serve applications including beverages, bakery, dairy, confectionery, personal care, fabric care and home care. The existing New Delhi facility has annual production capacity of 7,60,000 kg and an in-house R&D team of 54 specialists. A new facility is being developed at YEIDA, Uttar Pradesh.
Investment Rationale
- Capacity expansion: The planned facility adds 20,00,000 kg p.a. to existing capacity of 7,60,000 kg p.a., taking installed capacity to 27,60,000 kg p.a. The stated DCCO is Mar’26.
- Revenue and margin growth: Revenue increased from 70 in FY23 to 108 in FY25. EBITDA margin rose from 14.1% to 21.3% over the same period.
- Experienced team and in-house R&D: Chairman and MD Manoj Arora heads R&D and quality control and contributes to fragrance creation as chief perfumer. The R&D team comprises 37 fragrance specialists and 17 flavour specialists.
- B2B customer applications: The company supplies customised solutions to major FMCG brands and serves a range of food and non-food product categories.
- Industry demand: The note estimates the Indian fragrances market will grow at a CAGR of 14.5% from 2024 to 2032. It states the Indian flavours industry, sized at 4,287 Cr. in 2023, is expected to reach INR 8,100 Cr. by 2032, at a CAGR of 7.1%.
Sacheerome Key Financials
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenues | 70 | 85 | 108 |
| % Y-o-Y | 20.7% | 26.4% | |
| Gross Mar % | 41.1% | 39.4% | 40.7% |
| EBITDA % | 14.1% | 17.8% | 21.3% |
| PAT % | 8.5% | 12.2% | 14.8% |
| CFO/EBITDA | 108.4% | 65.8% | 98.3% |
| Debt/Equity | 0.00x | 0.03x | 0.06x |
| NWC (Days) | 78 | 75 | 42 |
Revenue grew year on year in FY24 and FY25, while EBITDA and PAT margins increased over the three reported years.
Valuation and Target Price
The note lists a CMP of 210.00 INR and market capitalisation of INR 469.83 Cr. It does not provide a target price, upside or explicit Buy, Hold, Reduce or Sell recommendation.
- 210.00 INR
- CMP
- INR 469.83 Cr.
- Market capitalisation
- 29.4x
- PE Ratio
Business and Capacity
Fragrances accounted for 95.0% of FY25 revenue, while flavours contributed 4.9%. The domestic market represented 92.4% of revenue and exports 7.6% in FY25. Capacity utilization rose from 75.2% in FY23 to 97.4% in FY25.
| Particular | FY23 | FY24 | FY25 |
|---|---|---|---|
| Installed Capacity (kg p.a.) | 7,60,000 | 7,60,000 | 7,60,000 |
| Utilized (kg. p.a.) | 5,71,580 | 6,65,688 | 7,40,560 |
| % Utilized | 75.2% | 87.6% | 97.4% |
| Revenue per Kg | 1,233 | 1,278 | 1,452 |
| EBITDA per Kg | 174 | 228 | 309 |
The report states that the new facility’s DCCO is Mar’26 (per RHP).
- IPO proceeds and project funding: The fresh issue raised INR 61.6 Cr.; INR 56.5 Cr. was allocated primarily to capex for the YEIDA facility, with the balance for general corporate purposes and issue-related expenses. Total capex is INR 184 Cr.; INR 46 Cr. had been incurred by May’25, with the balance to be funded through IPO proceeds, INR 21.4 Cr. of internal accruals and ~INR 60 Cr. of debt.
Industry
The note identifies demand for packaged and ready-to-eat food and beverages, urbanization, western food influences and growth in personal care as drivers for the Indian markets. It also gives a global fragrance and flavour market size of ~$33.3 Bn. in 2024, estimated to reach $44.6 Bn. by 2033 at a CAGR of 3.15%, with Asia Pacific described as the fastest-growing region.
Peer Comparison
| Company Name | M.Cap (INR Cr.) | PE (x) | 3 Year CAGR Revenue | 3 Year CAGR EBITDA | 3 Year CAGR PAT | FY25 Revenue (INR Cr.) | FY25 EBITDA % | FY25 PAT % |
|---|---|---|---|---|---|---|---|---|
| Sacheerome | 470 | 29.4x | 23.5% | 51.9% | 63.3% | 108 | 21.3% | 14.8% |
| S H Kelkar Ltd. | 3,194 | 24.4x | 12.2% | 16.7% | 9.4% | 2,123 | 13.9% | 3.5% |
| Privi Speciality | 9,304 | 42.8x | 14.3% | 56.0% | 190.2% | 2,101 | 21.8% | 8.8% |
3 Year CAGR is FY23-FY25.
Management
Manoj Arora, Chairman and MD, is described as a third-generation entrepreneur who started the company. He leads R&D and quality control and works as chief perfumer. Whole Time Director Dhruv Arora has 14 years of industry experience.
Shareholding
| Particulars | Pre-IPO | 31-Mar’25 |
|---|---|---|
| Promoter & Promoter Group | 98.00% | 71.54% |
| Public | 2.00% | 28.46% |
| Total | 100.00% | 100.00% |
The company listed on NSE-SME on 16-Jun’25. The report states IPO market capitalisation was INR 228 Cr., priced at INR 102 per share, with an entirely fresh issue of INR 61.6 Cr.
Key Risks
- Raw material prices: Volatility in raw material prices may affect the company if price increases are delayed or not passed through to end customers.
- Geographic revenue concentration: Revenue concentration in Uttar Pradesh was ~30% in FY25 versus ~37% in FY24.
- Capacity expansion execution: Timely commencement of capex without cost overruns is important for scaling revenue, as existing capacity was utilized at ~97.4% in FY25.
Our View
The note’s central points are Sacheerome’s revenue and margin growth, experienced R&D-led operations and planned capacity addition. Execution of the new facility and raw material cost pass-through are identified as key considerations. No explicit investment rating or target price is provided.
Standard disclosures
- Research Analyst has served as an officer, director or employee of subject company(ies): No
- We or our associates have received compensation from the subject company(ies) in the past 12 months: No
- We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
- We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months –No
- We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
- We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
- Nature of financial interest in subject company, if any –Nil
- We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
- Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
- We or our Associates or Research Analyst are engaged in market making of subject company – No
- By referring to any particular sector, Minerva Capital Research Solutions does not provide any promise or assurance of favorable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results.
- There are either no material conflict of interests or all existing and potential conflict of interest are disclosed herein.
Regulatory disclosures
Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.
The research report serves as general information and does not account for individual investment goals, financial situations, or needs. Minerva Capital Research Solutions strives to provide reliable and comprehensive information, sourced from what are believed to be trustworthy channels. However, this information has not been independently verified by Minerva Capital Research Solutions or its analysts, and no guarantees are made regarding its accuracy or completeness. The opinions expressed in this report reflect the views of the research analyst at the time of publication and may change over time. Minerva Capital Research Solutions and its affiliates as on date of publication of this report may or may not hold any positions in the securities discussed. The views presented are general and do not consider individual risk tolerance or investment objectives; therefore, readers should seek independent professional advice before making investment decisions. Minerva Capital Research Solutions does not guarantee a favorable outlook for any specific industry or sector and urges investors to consider all relevant risk factors, including their financial circumstances, before investing. The analyst certifies that their views accurately represent their personal opinions on the companies discussed and that no part of their compensation is tied to specific recommendations made in this report. This material should not be interpreted as an offer or solicitation to buy or sell securities in jurisdictions where such offers would be illegal. Consequently, brokerage and investment services described herein are not available to Canadian or U.S. persons. Distribution outside India requires prior written consent. This Research Report assumes that the recipient will assume all risks associated with its contents. If there are any disagreements or dissatisfaction with this report or its disclaimer, the only recourse is to cease using it. Minerva Capital Research Solutions and its affiliates will not be liable for any direct or indirect losses resulting from the use of this report. Recipients are required to adhere to these restrictions. The material is for the personal use of authorized individuals and does not constitute a solicitation or offer to buy or sell any securities in jurisdictions where such actions would be illegal.
For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in or guptanishant.iimi@gmail.com| Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In
Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%