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.