Mother Nutri Foods Ltd. IPO Research Report

Mother Nutri Foods Ltd. IPO Analysis

Mother Nutri Foods Ltd., incorporated in 2022 (CIN U51909GJ2022PLC128485), manufactures B2B peanut butter (10+ flavors like chocolate, honey, coconut; variants: natural, creamy, crunchy) and roasted peanuts under “Spread & Eat” brand, with private labeling for hypermarkets/supermarkets in 20+ countries (UK, Canada, UAE, US). Single facility at Mahuva, Bhavnagar, Gujarat (capacity expansion to 15,200 MTPA planned); 41 employees as of Jul 2025. Peanut butter drives 60-99% revenue (₹3,021L in H1FY26); roasted peanuts grew to 30% in FY25.

IPO Details: Opens Nov 26-28, 2025; lists BSE SME Dec 3; ₹39.59 Cr (fresh ₹28.82 Cr + OFS ₹7.92 Cr by Umeshbhai Kantilal Sheth); price ₹111-117; lot 1,200 shares (retail min ₹2,80,800/2,400 shares); MCAP ~₹147 Cr (upper band). Proceeds: new facility (₹23.19 Cr), corporate purposes. Day 1 subscription 0.92x (NII full, retail 0.38x).

Promoters & Shareholding

Promoters (family-controlled, 90.98% pre-IPO → 65.93% post): Umeshbhai Kantilal Sheth (42.12%, OFS seller), Rajnikantbhai Indubhai Thakar (37.21%), Parth Umeshbhai Sheth (7.52%), Chintan Rajnikant Thakar (2.82%), Vandanaben Umeshbhai Sheth (0.51%), Naynaben Rajnikant Thakar (0.51%). Directors: Chintan Thakar (MD), Umeshbhai Sheth (WTD). Business acquired via BTA from partnership (Jul 2022, ₹440.67L equity issuance); multiple private placements/bonus (1:1 Aug 2025). No pledges; related party loans ₹382L (Sep 2025).

Restated Standalone P&L (₹ Lakh)

Metric	H1FY26 (Sep 2025)	FY25	FY24	FY23
Revenue from Ops	5,024.83	9,024.31	8,091.60	7,593.96
Other Income	22.32	23.93	13.02	31.90
Raw Mat Consumed	3,053.29	8,000.95	6,957.68	7,575.01
Changes in Inv	(894.56)	(893.95)	(600.33)	(866.64)
Employee Exp	179.36	335.40	331.33	238.13
Finance Costs	95.22	211.79	193.84	109.10
Deprec/Amort	23.69	55.03	63.56	69.66
Other Exp	153.31	560.37	554.57	355.60
PBT	647.71	778.66	603.97	145.00
PAT	531.52	646.62	477.30	112.82
PAT Margin %	10.58	7.17	5.90	1.49
EPS (Basic, post-bonus)	5.41	7.06	5.35	1.80 ​

Notes: Standalone (no subs); Ind AS compliant; clean audit (Ratan Chandak Co LLP); restatements for policy uniformity, prior period (minor: interest, tax ~₹16L total). No extras/qualifications; gratuity provisioned (AS-15). Cash flows: ops positive (₹753L H1FY26); investing in assets.Mother_Nutri_Foods_Ltd._-_RHP.pdf​

Balance Sheet Highlights (₹ Lakh, Sep 2025)
Equity & Liab: Share Cap ₹983; Reserves ₹2,054; Net Worth ₹3,037 (RoNW 17.5%); LT Borrow ₹5 (D/E low); ST Borrow ₹3,048; Trade Pay ₹1,975 (MSME heavy).

• Assets: PPE ₹363; Inv ₹3,341 (40%); Trade Rec ₹4,230 (debtor days 124, up); Cash ₹8.
• Ratios: RoE 19% (H1), 26% FY25; RoCE 12%; NAV ₹30.91/share; EBITDA Marg 14.81% H1 (11% FY25). Segment & Books Performance

Peanut butter: 60% H1FY26 rev (down from 99% FY23 due to roasted peanuts diversification to 30% FY25). Private label 97% rev (68% domestic); exports via 20+ countries. Working cap stretch (rec days 82→124 FY23-25); top suppliers/customers undisclosed but B2B focus. Capex: land/buildings ₹559L gross; no order book (volume-driven). Tax shelter clean; related party sales/loans moderate. Growth: rev +12% FY25, PAT +35%; H1 rev + annualized 112%.

Investment Verdict

Strong execution in B2B peanut processing (low-moat but efficient ops, export diversification); improving margins/debt profile support growth. Valuation reasonable (post-IPO P/E 13.8x FY25 EPS ₹8.48, P/B 2.3x) vs peers; fully priced but listing pop possible (GMP neutral Day 1). Risks: competition, rec stretch, 97% private label dependency.

Recommendation: Subscribe for medium-long term (2-3 yrs) if SME-tolerant; growth justifies entry despite muted sub.

Subscription & Market Updates

Day 1 undersubscribed (0.92x overall; QIB full, retail/NII muted); Day 2/3 data pending closure. Proceeds allocation: working capital ₹13.1 Cr, debt repayment ₹6.83 Cr, D2C/namkeen capex. No material events like acquisitions or litigations disclosed.

Post-listing filings expected Q3 FY26 results, board meetings. Track BSE SME announcements for updates.

1. Latest corporate announcements and filings
Mother Nutri Foods Ltd. IPO opened Nov 26-28, 2025 (₹39.59 Cr, ₹111-117/share, BSE SME listing Dec 3); Day 1 subscription 0.92x (NII 1x, retail 0.38x). RHP filed Nov 20, 2025 with restated financials (H1FY26 PAT ₹531.52L); board approved DRHP Sep 2025. No post-RHP filings; allotment expected Nov 29, GMP flat ₹0. Auditors (Ratan Chandak Co LLP) issued clean examination report Nov 20. Track BSE for listing updates.

2. Complete order book and major customer contracts
No formal order book disclosed; B2B volume-driven model with private label (97% revenue) for hypermarkets/supermarkets in 20+ countries (UK, Canada, UAE, US). Top 10 customers undisclosed but peanut butter 60-99% revenue (₹3,021L H1FY26); no long-term contracts named. Exports via private labeling; domestic 68%. Risks: customer concentration unquantified. Growth via capacity to 15,200 MTPA.

3. Full standalone and consolidated profit and loss statements with notes
Standalone only (no subs): H1FY26 Rev ₹5,025L (+112% ann.), PAT ₹532L (10.58% marg.); FY25 Rev ₹9,024L (+12%), PAT ₹647L (7.17%). Raw mat 61-100% costs; inv changes volatile (±₹895L); emp ₹179-335L; fin ₹95-212L; depr ₹24-70L. Notes: Ind AS, clean restatements (₹16L prior adj.); EBITDA ₹744L H1 (14.81%). No consol.

4. Recent auditor reports and any qualifications or going concern notes
Ratan Chandak Co LLP (peer-reviewed) report Nov 20, 2025: clean, no quals/mods for Sep 2025/Mar 2023-25; prior auditor Meghrajsinh Gohil FY23 clean. Restatements minor (policy, prior ₹16L tax/int); AS-15 gratuity provisioned (₹3.41L). No going concern issues; positive cash ops ₹753L H1. SQC1 compliant.

5. Details of related party transactions and promoter shareholding changes
RPTs: unsecured loans ₹382L Sep 2025 (from dirs/relatives, demand-repayable, interest-free); sales moderate. Promoters 90.98% pre-IPO →65.93% post: Umeshbhai Sheth 42.12% (OFS ₹7.92Cr), Rajnikantbhai Thakar 37.21%, Parth Sheth 7.52%; 1:1 bonus Aug 2025 (49L shares). Changes: FY25 placements ₹11.3Cr (₹180/share prem); no pledges.

6. Draft a full blog outline covering technical and fundamental analysis
I. Intro: IPO overview (₹39.59Cr, P/E 13.8x FY25). II. Fundamentals: Rev growth 12%, PAT +35%, RoE 26%, D/E low, capex ₹23Cr. III. Technicals: Post-listing charts (RSI, MA); peers P/B 2-3x. IV. Segments: PB 60-99%, roasted 30%. V. Valuation: Fair ₹100-130. VI. Risks: Rec 124d, competition. VII. Verdict: Subscribe LT.

7. Detailed promoter background and related party transaction summary
Family promoters: Umeshbhai Kantilal Sheth (WTD, 42.12%, BTP exp); Rajnikantbhai Indubhai Thakar (37.21%); Chintan Thakar (MD, 2.82%); Parth Sheth (7.52%). Acquired biz Jul 2022 (₹441L shares). RPT summary: Loans ₹382L/₹88L FY25 (demand, 0%); no sales >10%. No pledges/guars beyond std. Clean governance.

8. Extract and format full audited financial statements FY23–25
P&L (₹L): FY23 Rev 7,594/PAT 113 (1.5%); FY24 8,092/477 (5.9%); FY25 9,024/647 (7.2%). BS Sep25: Eq ₹3,037 (NW ₹31/sh), Borrow ₹3,053, Inv ₹3,341, Rec ₹4,230. Cash flows ops +₹1,028L FY25. Notes: Auth cap ₹225Cr; sec prem ₹286L post-bonus.

9. Compute valuation metrics and fair IPO price scenario analysis
Post-IPO MCAP ₹147Cr (upper); FY25 P/E 13.8x (EPS ₹7.06 post-bonus, FY25 ₹8.48 adj?); P/B 2.3x (NAV ₹30.9); EV/EBITDA 8x (₹1,022L). Peers 15-20x. Fair: Base ₹105 (12x FY26E EPS ₹9), Bull ₹130 (18x), Bear ₹90 (10x). GMP 0 justifies.

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1. 10 Analyze segment revenue, margins, growth drivers with charts
   Peanut butter: FY23 99.7% (₹7,554L), FY24 82% (₹6,647L), FY25 69% (₹6,220L), H1FY26 60% (₹3,021L); roasted peanuts up to 30% FY25. Margins: PAT 1.5→7.2→10.6%; EBITDA 3.8→10.5→11.3→14.8%. Drivers: Exports/private label, capex 15,200MT.
   
   Mother Nutri Foods Ltd is a B2B peanut butter manufacturer with a diversified product range (10 flavors, 5 varieties) and exports to 20+ countries including UK, Canada, UAE, and US. The company operates a single manufacturing unit in Gujarat with a capacity of 11,200 MTPA, expanding soon to 15,200 MTPA, indicating growth potential. Revenue for H1FY26 stood at ₹50.2 Cr, increasing from ₹75.9 Cr in FY23, driven by peanut butter contributing between 60% and 99% of total revenue across years. Private labeling forms 97% of revenue, reflecting a B2B-focused business model with expansion into D2C channels like “Spread & Eat” brand.
2. Financially, the company shows robust growth: revenue increased by 12% in FY25 on a restated basis, with PAT at ₹6.47 Cr (7.17% margin) and H1FY26 EPS post-bonus at ₹5.41. Key financial ratios show improving profitability with ROE at 17.5% (H1FY26), RoCE 12%, and a strong EBITDA margin of 14.81%, suggesting operational efficiency. Debt levels are manageable with total borrowings around ₹30.5 Cr, mostly short term, and a debt-equity ratio near 1. Capital structure is strengthened by a recent 1:1 bonus share issue.
3. Auditor reports by Ratan Chandak Co LLP for FY23–25 show clean opinions with no qualifications or going concern issues, assuring financial statement reliability. Restatements were limited to accounting policy changes with no significant adjustments required. The company employs actuarial valuation for employee benefits under AS-15 and maintains adequate provisions for gratuity totalling ₹3.41 Lakh (Sep 2025). Cash flow from operations improved significantly to ₹7.53 Cr (FY25), supporting working capital needs.
4. Related party transactions mainly include interest-free unsecured loans of ₹3.82 Cr repayable on demand from promoters and directors. Promoter shareholding is concentrated, with Umeshbhai Kantilal Sheth (42%), Rajnikantbhai Indubhai Thakar (37%), and Parth Umeshbhai Sheth (7.5%) cumulatively holding above 85%. Promoters conducted multiple private placements at a premium of ₹170/share and the recent bonus shares capitalized ₹4.91 Cr from securities premium. There are no pledges on promoter shares, highlighting stable ownership and governance.
5. Technical aspects indicate growing market potential with segment revenue for peanut butter increasing from ₹75.5 Cr FY23 to ₹62.2 Cr FY25, while roasted peanuts segment scaled to 30% revenue FY25. Margins have markedly improved: PAT margins rose from 1.5% to over 10% in H1FY26, aided by scale and cost control. The company’s valuation post-IPO is attractive with a P/E of 13.8x FY25 EPS and P/B near 2.3x. The business faces risks from debtor days lengthening to 124 on trade receivables and high MSME trade payables (~₹18.8 Cr), indicating working capital challenges.
   
   These fundamentals combined with clean audits, expanding market reach, and improving margins present a compelling investment case for medium-term investors considering the IPO.

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Mother Nutri Foods Ltd. IPO warrants a cautious “Subscribe for Long-Term” stance for high-risk-tolerant investors, given steady revenue growth from ₹75.9 Cr (FY23) to ₹90.2 Cr (FY25) and PAT margins expanding from 1.5% to 7.2%, backed by capacity doubling to 15,200 MTPA via ₹23 Cr capex.

Valuation appears reasonable at upper-band ₹117 (post-IPO MCAP ₹147 Cr, FY25 P/E 13.8x EPS ₹7.06, P/B 2.3x NAV ₹30.9), below peers’ 15-20x, with RoE 26-36% and EBITDA margins rising to 14.8% (H1FY26), though flat GMP ₹0 signals no listing pop expectations.

Subscription remains muted at 1.19x (Day 2, Nov 27; retail 0.68x, NII 2.62x Day 1), reflecting concerns over working capital stretch (debtor days 124, MSME payables ₹18.8 Cr) and private-label dependency (97% revenue, no moat).

Strengths include clean audits, export reach (20+ countries), certifications (BRCGS, FSSAI), and family promoter stability (90% holding pre-IPO), but risks like raw material volatility and competition temper short-term appeal.

Suitable for 2-3 year horizon betting on nut-based demand tailwinds and execution, avoiding listing gains; allotments likely easier for retail due to low subscription.

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