- Price then
- INR 174.00
- Market cap then
- INR 274 Cr.
Sat Kartar Shopping Ltd sells Ayurveda wellness products through a direct-to-consumer model and contract manufacturers. The Minerva Capital Research Solutions note discusses the company’s growth plans and operating profile but gives no recommendation or target price. Revenue grew to INR 163 Cr. in FY25, while cash flow from operations turned negative.
About Sat Kartar Shopping
Incorporated in 2012 and based in Delhi, Sat Kartar Shopping provides Ayurveda healthcare and natural wellness products. Its portfolio includes specific-problem products such as Addiction Killer, Liv Muztang and Kaama Gold, as well as lifestyle products for diabetes, joint pain relief and piles. The company sells directly to customers through its own and third-party e-commerce websites, TV marketing and digital platforms. It uses six contract manufacturers, two exclusive and four non-exclusive, and reports a presence across 11,600 pincodes.
Investment Rationale
- Direct-to-consumer distribution: Sales use the company’s website and third-party e-commerce, TV advertising, Google and social media. From FY22 to FY24, Google’s share of product revenue rose from 15% to 55%, while TV marketing’s share declined from 77% to 23%.
- Broad product range: The company has around 60+ SKUs for 16+ problems. Specific problem-led products accounted for 71% of product revenue in Apr’24 to 15-Dec’24; the company says 80% of revenue comes from sexual wellness, diabetes, piles, addiction and bones-joint pain.
- Revenue and margins have grown: Revenue rose from INR 52 Cr. in FY22 to INR 163 Cr. in FY25. Over the same period, EBITDA margin increased from 4.4% to 8.7% and PAT margin from 2.7% to 6.0%.
- Expansion plans: Management targets INR 500 Cr. of revenue and a 12% PAT margin in FY28, from INR 163 Cr. of revenue and a 6% PAT margin in FY25. The stated near-term milestone is INR 250 Cr. of revenue, supported by existing and newer SKUs and wider pincode coverage.
- PlantoMed acquisition: The company completed a strategic acquisition focused on the diabetes niche, taking a 76% stake in PlantoMed for INR 90 Lacs. The report notes PlantoMed’s 60% repeat rate.
- Manufacturing capability: A facility under wholly-owned subsidiary Ajooni Life Sciences Private Limited is intended to manufacture Ayurvedic capsules. The report states an investment of INR 1 Cr. and says the facility began operations from 01-Oct’25.
Sat Kartar Shopping Key Financials
| Particulars | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenues | 52 | 83 | 128 | 163 |
| % Y-o-Y | 59.9% | 54.1% | 27.4% | |
| EBITDA | 2.3 | 5.3 | 10.2 | 14.2 |
| EBITDA % | 4.4% | 6.3% | 8.0% | 8.7% |
| PAT | 1.4 | 2.5 | 6.3 | 9.8 |
| PAT % | 2.7% | 3.0% | 4.9% | 6.0% |
| Total Debt | 8.1 | 3.8 | 1.8 | 5.9 |
| Debt / Equity | 10.58x | 1.15x | 0.19x | 0.11x |
| CFO | 2.3 | 8.0 | 7.0 | (5.1) |
| CFO/EBITDA | 99.6% | 151.2% | 68.8% | (35.6%) |
Revenue and reported profit margins increased over FY22–FY25, while CFO turned negative in FY25 as inventory and trade receivables rose.
Valuation and Target Price
The report lists a CMP of INR 174.00 as of 17-Oct’25, a market capitalisation of INR 274 Cr. and a PE ratio of 27.9x. It does not state a target price, upside or stock recommendation.
- INR 174.00
- CMP (17-Oct’25)
- INR 274 Cr.
- Market capitalisation
- 27.9x
- PE ratio
- Not Rated
- Credit rating
Key Risks
- Cash conversion: CFO declined from 7.0 in FY24 to (5.1) in FY25. The report attributes the change to increases in inventory and trade receivables.
- Repeat-customer disclosure: The report says the company stated a 25% repeat rate in its investor presentation, while the measured rate for Apr’24 to 15-Dec’24 was 8.27%.
- Advertising intensity: Advertisement expense was INR 76.0 Cr., or 46.6% of revenue, in FY25. The report says rising advertisement expense as a share of revenue indicates intense industry competition.
- Product mix and pricing: The report describes the product mix as yet to mature and says Sat Kartar products are priced at a premium to peers in the compared categories.
- Intellectual property: The report notes that intellectual property rights cannot be owned for Ayurveda products because solutions are derived from the ancient Ayurvedic book Charak Samhita.
Business and Use of Proceeds
The report describes an asset-light model based on contract manufacturing and direct customer acquisition. Product formulations are developed by in-house doctors with AYUSH-certified contract manufacturers, submitted to the AYUSH department and registered under the manufacturer’s name, with ownership retained by the company through manufacturing agreements. The company reports a 750+ multilingual customer-care workforce and coverage across 11,600 pincodes, with further expansion planned.
Fresh Issue Proceeds
Net proceeds of INR 30.25 Cr. were allocated to an unidentified acquisition, marketing and advertisement, capex, technology investment and general corporate purposes.
| Particulars | INR Cr. | Remarks |
|---|---|---|
| Unidentified Acquisition (India or abroad) | 5.00 | Preferred target in USA for reaching overseas customers |
| Marketing & Advertisement | 11.00 | Digital Marketing: INR 6 Cr.; TV Advertising: INR 3 Cr.; Ad material: INR 2 Cr. |
| Capex | 8.00 | Acquire property as dedicated space for business ops., customer support, marketing & studio |
| Investment in Technology | 5.00 | App development, IT Infra setup, AI Voice Bot |
| General Corporate Purposes | 1.25 |
Peer Comparison
The report names Jeena Sikho Lifecare and Kerala Ayurveda as peers cited in the RHP. It notes that Sat Kartar’s products are priced at a premium to peers in the product comparisons shown.
| Company Name | M.Cap (INR Cr.) | PE (x) | Revenue CAGR % (FY23-FY25) | EBITDA CAGR % (FY23-FY25) | PAT CAGR % (FY23-FY25) | FY25 Revenue (INR Cr.) | FY25 EBITDA % | FY25 PAT % |
|---|---|---|---|---|---|---|---|---|
| Sat Kartar | 274 | 27.9x | 40.1% | 64.3% | 98.1% | 163 | 8.7% | 6.0% |
| Jeena Sikho | 9,132 | 74.0x | 51.7% | 64.5% | 64.0% | 469 | 26.7% | 19.1% |
| Kerala Ayurveda | 519 | -ve PAT | 16.0% | EBITDA loss for FY25 | PAT loss from FY23 to FY25 | 126 | (4%) | (11%) |
Management
The report identifies Mr. Manprit Singh Chadha as promoter and COO, and describes him as a first-generation entrepreneur. Remuneration of key management personnel was INR 2.7 Cr. in FY25, approximately 1.6% of operating revenue. Related-party payments in FY25 included salaries of approximately INR 2.5 Cr. and marketing, promotion and slot telecast charges of INR 5.5 Cr. to SK Sarthi Pvt. Ltd. and INR 0.15 Cr. to Affiance Advertisement.
Key Updates: The report records that SAT KARTAR USA INC became a wholly-owned subsidiary on 15-Oct’25 for consideration of $1,000. It also notes that the capsule production facility under Ajooni Life Sciences Private Limited commenced operations from 01-Oct’25.
Our View
Sat Kartar’s D2C distribution, expanding product range and higher FY25 revenue and margins are set alongside substantial advertising costs and negative CFO in FY25. The note sets out management’s growth targets but does not provide a stock recommendation or target price.
Standard disclosures
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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%