Stanbik Agro Limited

Stanbik Agro Limited carries on the business of contract farming, wholesaling and supplying of agricultural commodities. The company works in three key business verticals: 1. Contract Farming: The Company finalizes contract farming agreements only after ensuring key conditions are favourable, such as assessment of the land's past yield, availability of adequate water resources, presence of proper boundaries or demarcation, verification of soil quality suitable for cultivation, and securing rights for production and sale of the produce. Under the contract farming arrangement, the Company takes the land on lease from the farmer and undertakes all cultivation and production activities. In consideration, 10% of the agricultural produce from the leased land is provided to the land owners. The Company undertakes year-round cultivation, and in case of loss due to rain or natural calamities, such loss is borne by the Company, though no such instance has occurred in the past. The Company has exclusive rights to use the leased land, and the agreement is renewed annually based on mutual consent and prevailing conditions. 2. Modern Retailing: Company concentrates on using modern retail channels to deliver fresh fruits and vegetables straight to customers in the modern retailing sector.  3. B2B Business: The B2B business segment caters to wholesalers, traders, and other businesses that require bulk quantities of agriculture commodities. By integrating the network of farmers, they offer seamless sourcing and delivery solutions customized to meet the unique requirements of the business-to-business (B2B) clients. The Company also supplies products through various large e-commerce B2B platforms, enhancing the distribution capabilities and ensuring greater accessibility. As per financial performance, Stanbik Agro Limited has posted total income / net profits of Rs 19.96 / 1.01 Cr (FY23), Rs 26.55 / Rs 1.85 Cr (FY24), Rs 52.48 Cr / 3.73 Cr (FY25) and Rs 35.54 Cr / 2.22 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth. As of 30.09.25, the Company has an order book amounting to Rs 16/- Cr of confirmed purchase orders, which are expected to be fully realized within the current financial year itself. Company has an average EPS of Rs 6.22 and average RoNW of 48.94% for last three fiscals. Issue is priced at a P/BV of 1.28 as per NAV of Rs 23.45/- as on Post Issue. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 21.60, 10.69 and 8.98 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Grow House Wealth Management Private Limited is associated with this SME IPOs, and this is first SME IPO by the BRLM. ( As on 10.12.25 ) As per financials, Stanbik Agro Limited has shown good growth, RoNW is 22.33% and P/E is 21.60, 10.69 and 8.98 respectively as per FY24, FY25 and annualised FY26 earnings. Also, order-book as on 30.09.25 is around Rs 16/- Cr. So issue looks fairly priced. Company is engaged in the business of contract farming, wholesaling and supplying of agricultural commodities, which is highly competitive business segment. BRLM is very new. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Ashokbhai Dhanajibhai Prajapati
• 2  Chirag Ashokbhai Prajapati