Shivashrit Foods Ltd

About Shivashrit Foods

Incorporated in 2017 in Kanpur, Uttar Pradesh, Shivashrit Foods manufactures, supplies and exports dehydrated potato flakes from its facility in Aligarh. It serves domestic and international food manufacturers on a B2B basis and has recently entered the B2C market, selling products through its website and e-commerce channels. Potato flakes are used in products including soups, snacks and bakery items.

Shivashrit Foods IPO Details

Use of IPO Proceeds

• Expansion capex: INR 26.30 Cr. is earmarked for funding capex for expansion.
• Working capital: INR 19.00 Cr. is earmarked for working capital for the expansion project.
• General Corporate Purpose: The amount is shown as [●].

Strengths

• Planned capacity increase: Existing capacity of 28.8 MT/Day is to be expanded by 52.8 MT/Day to reach ~82 MT/Day. Commercial operations from the added capacity are expected to commence by 01-Jun’26. The facility has FSSAI, USFDA, HALAL and Global Standard for Food Safety certifications.
• Location near potato supply: Uttar Pradesh contributed ~41.5% of the company’s potato purchases in FY25. The report notes that the state has the highest share of potato production in India, citing APEDA.
• B2C entry and export opportunity: The company has begun selling online to consumers. Management plans to increase exports from the new capacity, which the report says may help improve margins.
• Promoter experience: The promoters have a collective experience of 15 years.
• Market demand: The report cites an expected 6.9% CAGR for the India potato flakes market from 2024-2032.

Shivashrit Foods Key Financials

Revenue and EBITDA increased across the reported periods, while CFO / EBITDA was (37.5%) in FY25.

Business and Operations

In FY25, domestic sales accounted for 78% of revenue and exports 22%. B2B domestic revenue was 81 Cr., B2B exports were 23 Cr. and B2C online revenue was 0.02 Cr. Existing capacity utilisation was 81.2% in FY25, compared with 93.9% in FY23. The company sources most potatoes through traders, who represented 88.6% of purchases in FY25; it plans to build longer-term relationships with farmers, third-party suppliers and traders to reduce reliance on open-market purchases.

The report cites RHP working-capital estimates that translate into sales projections of INR 145 Cr. for FY26 and INR 305 Cr. for FY27, representing revenue growth CAGR % (FY25 to FY27) of ~70.5%. These are RHP-based projections.

Industry

The report cites Allied Market Research estimates that India’s potato flakes market will grow at a CAGR of 6.9% from 2024-2032. The dehydrated form is estimated to grow at 6.8% over that period, while the frozen form is estimated at 7.5%. By application, the cited CAGR estimates are 7.1% for bakery, 6.3% for snacks, 7.3% for soups and 7.2% for meat processing.

IPO Valuation and Our View

The issue is valued at a P/E ratio of 21.5x based on FY25 PAT. Considering promoter experience, planned capacity expansion, proximity to raw material sources, B2B domestic and export operations, and entry into B2C, Minerva Capital Research Solutions recommends Subscribe to the issue.

INR 135 to 142 per share

IPO price band

~INR 259.42 Cr.

Implied market capitalisation

21.5x

P/E based on FY25 PAT

Subscribe

Recommendation

Key Risks

• Customer concentration: The top 5 customers contributed 83.1% of FY25 revenue, up from 58.9% in FY24. The company has no legal contracts with these customers; the report says long-term relationships mitigate the risk to some extent.
• Seasonal procurement and working capital: A significant share of potato procurement takes place during the December-to-March peak season, extending the inventory cycle. Operations also depend on cold-storage facilities.
• Capacity expansion execution: Timely completion of the expansion and commencement of commercial operations by 01-Jun’26 remain key monitorables.
• Cold-storage reliance: The company uses third-party and related-party cold-storage facilities adjacent to its manufacturing facility, including a facility promoted by the company’s promoter and rented on a pay-per-use basis.

Our View

The IPO case rests on capacity expansion, an established B2B business and the addition of B2C sales, against the report’s cited demand outlook for potato flakes. High customer concentration, working-capital needs and timely commissioning of the expansion are key risks; the report recommends Subscribe at the stated issue valuation.

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 past 12 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
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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.

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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%