Leo Dry Fruits and Spices Trading Limited

As per financial performance, Leo Dry Fruits and Spices Trading Limited has posted total income / net profits of Rs 5.27 Cr / Rs 0.08 Cr (FY22), Rs 36.47 Cr / Rs 3.63 Cr (FY23), Rs 62.27 Cr / Rs 6.64 Cr (FY24) and Rs 17.88 Cr / Rs 1.87 Cr (H1 FY25). So as per previous financials data, company has shown good growth, but trade receivables are very high. Company has posted an average EPS of Rs 3.96 and average RoNW of 34.99% for last three fiscals. Issue is priced at a P/BV of 1.9 as per NAV of Rs 27.39/- as on 30.09.24. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 25.60, 14.02 and 24.85 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Shreni Shares Limited is associated with this SME IPO and this is 35th IPO from the lead manager. From last 10 IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 IPOs, all are trading above issue price or at par as on today. ( As on 31.12.24 ) As per financials, Leo Dry Fruits and Spices Trading Limited has shown good growth, RoNW is 19.58% and P/E is respectively 25.60, 14.02 and 24.85 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced, but trade receivables are very high. Company is engaged in manufacturing/processing, trading and marketing of wide range of spices, dry fruits and other grocery products under the brand name 'VANDU' and frozen/semi fried products under the brand name of 'FRYD', which is highly competitive and fragmented business segment. Performance of BRLM post listing is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Kaushik Sobhagchand Shah
• 2 Mr. Ketan Sobhagchand Shah
• 3 Mr. Parth Ashish Mehta